Protecting workers must be integral to SA's economic strategy during turbulent times

THE newly introduced 30% tariff on South African goods exported to the United States of America is a major cause for concern for our country’s economy and threatens to further exacerbate our already significant unemployment crisis.

- DR JESSICA HUTCHINGS

In recent months, US tariff hikes have disrupted global trade dynamics, sending local exporters scrambling for alternative trade channels. Several key industry sectors in South Africa, including steel, aluminium and automotive, have been directly impacted by the US tariffs, forcing local organisations to adapt their operations.

The global ripple effects of these measures have also been significant. Reduced global demand, supply chain disruptions and strained trade relationships with key partners can have a knock-on effect on South Africa's export-heavy sectors, including mining, metalwork and automotive.

This has further threatened to endanger livelihoods, weaken community resilience and expose workers to heightened physical and psychosocial risks. Alarmingly, multinational accounting giant EY warns that South Africa could shed about 100 000 jobs due to the tariffs, which would be catastrophic for a country already grappling with a national unemployment rate of over 33%.

When global demand softens under protectionist policies, South African producers feel the squeeze immediately. Mining companies face deferred orders from smelters abroad, metal fabricators contend with higher input costs, and manufacturers see tentative buyers delaying new contracts.

The automotive sector has not been spared either, with job cuts rippling through original equipment manufacturers such as the popular German carmaker plant, where production of left-hand drive vehicles destined for the US market is increasingly vulnerable to shifting trade rules and weakened foreign appetite.