Trump’s trade war: South Africa’s unwanted casualty?

PRESIDENT Trump’s announcement of sweeping reciprocal tariffs, while framed as a move towards fair trade, throws a significant wrench into the gears of global supply chains and presents a particularly complex challenge for South Africa.

- DR ERNST VAN BILJON

The core premise—that tariffs should mirror those imposed on US goods—sounds equitable on the surface.

However, the sheer scale of the disparities, with some countries facing near 30% tariff impositions, would signal major trade disruption.

For global supply chains, this announcement creates a landscape of heightened uncertainty and increased costs. Companies operating across borders will face the prospect of aggressively tariff-hopping, leading them to reassess sourcing strategies, production locations, and trading models.

This could lead to a fragmentation of supply chains, as businesses seek to diversify their operations to mitigate the impact of the tariffs.