Trade unions express concern over Trump's proposed tariff on SA exports

WORKERS unions in South Africa have raised concern about the impact of US President Donald Trump's announcement of 30% tariff coming into effect on 1 August.

- YOGASHEN PILLAY

The Federation of Unions of South Africa (Fedusa) said while it did not subscribe to alarmist projections of a 'jobs bloodbath,' it was mindful that the implications for South Africa's export-led industries, particularly the automotive sector, could be profound if such measures were implemented.

Fedusa added it was particularly attuned to the concerns raised by its affiliate, the Motor Industry Staff Association (MISA), whose members were deeply embedded in a sector that has long relied on stable and rules-based access to US markets through the African Growth and Opportunity Act (Agoa).

"The proposed tariff would render South African automotive and manufactured goods significantly more expensive and less competitive in a vital export market. A contraction in demand would almost certainly force firms to scale down production, with downstream effects that include shift reductions, deferred investments, and potential job losses over time," Fedusa said.