US tariffs don't just hit exports, they hit South Africa's digital future

ON JULY 7, 2025, the President of the United States Donald Trump issued a formal letter to President Cyril Ramaphosa announcing a 30% tariff on all South African goods and products entering the US. This decision, he claims, is in response to “persistent trade deficits” and South Africa’s own tariff and non-tariff barriers.

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While the tariffs are not limited to the tech sector, their implications for the South African digital economy, SMMEs, and ICT service providers are especially severe. This is a sector built on fragile margins, export driven business models, and global digital dependencies. The 30% tariff, and the separate 10% tariff on companies aligned with BRICS, threatens to undo years of slow, hard-earned progress in transforming South Africa into a digital player on the continent.

So, what exactly are these tariffs, and how do they affect us?

A tariff is a tax imposed on imported goods. Beginning August 1, 2025, every product or service originating from South Africa and landing in the US will be slapped with a 30% surcharge. The letter makes it clear: this is not limited to specific sectors or industries, it’s a blanket economic action.

Here’s where it matters most for us: South Africa's tech exports, whether software services, BPO, data management, or hardware components, are deeply integrated with American clients, platforms, and infrastructure. When you add 30% to the cost of doing business, you price our companies out of the market.

SMMEs that rely on US partnerships or exports are already asking, “Will our clients still afford us? Will our services survive this margin cut?

“What does this mean for our digital startups and locally owned tech firms?

It means turbulence. It means potential job losses, stalled expansion, and cancelled deals.

Many startups have clients or funding ties in the US, from accelerators like Y Combinator to data hosting agreements with AWS or Microsoft Azure.