Sacci warns that US tariffs could threaten South Africa's economic stability

THE South African Chamber of Commerce and Industry (Sacci) has raised alarm over the potential implications of a sweeping 30% tariff imposed by the United States on South African exports.

- SIPHELELE DLUDLA

Sacci on Wednesday said this initiative poses a significant threat not only to the nation's economy but also to the sustainability of long-term business relations between the two countries.

Sacci said the backward linkage effects for the South African economy of changing foreign trade relations will be larger than the initial effect on trade export volumes.

The type (categories) of exports and the sectors affected will also play a role in how it impacts economic growth and employment in South Africa.

This comes as the International Monetary Fund (IMF) has projected South Africa's real economic growth for 2025 and 2026 at a modest 1% and 1.3%, respectively.

This cautious forecast aligns closely with insights from the South African Reserve Bank, which, during its Monetary Policy Committee (MPC) meeting last month, echoed these growth predictions at 0.9% for 2025 and 1.3% for the following year.

Sacci said that the inherently open nature of South Africa's economy—where exports contribute around 32% to the national output—underscored the urgency of nurturing and maintaining stable global business relationships.

Over the first half of 2025, exports to the US from South Africa constituted a notable 7% of total merchandise exports, highlighting the critical position that the US markets hold for local businesses.