South Africa braces for economic turmoil as US export tariffs take effect

AUGUST 1, 2025, marks the dawn of a new era for South Africa, albeit a troubling one, as a hefty 30% export tariff to the United States came into effect.

- SIPHELELE DLUDLA

This significant policy change has sent ripples through the nation’s economy, stirring anxiety among businesses and consumers alike.

With no agreement in sight to prevent this trade burden, South Africans are bracing themselves for the ramifications on both local markets and international trade relations.

US President Donald Trump last month announced that his administration would levy a staggering 30% tariff on all South African products entering the US, with some exclusions or reduced tariffs on metals and minerals, in a bid to address longstanding trade imbalances and unfair market restrictions.

South Africa exports billions of rands’ worth of goods to the US each year, including fruit, vegetables, meat, and wine. These sectors employ thousands of workers, and the 30% tariff will render their products uncompetitive in the American market, placing immense pressure on producers and exporters.

Major South African exports to the US include precious stones and metals, motor vehicles, parts and accessories; iron and steel, machinery; aluminium products, ores, organic chemicals, chemical products, nickel products, agricultural products such as citrus fruits, wine, processed foods.

According to estimates, the tariffs will add roughly $3.5 billion (R63bn) to the cost of exports to the US, based on South Africa's 2023 export value.