US tariffs: SA seeks new export markets

The country wants deals that aid value addition and industrialisation rather than extractive trade

- Nkateko Joseph Mabasa

South Africa is preparing to diversify its export markets in response to the impending 30% tariff imposed by the US, which government officials say will cost jobs and shave 0.2% off economic growth.

The country is one of several slapped with punitive US tariffs as it moves to protect its own manufacturers and labour force.

President Donald Trump announced the tariffs in April but delayed them for 90 days to allow countries to negotiate better deals. In July, he confirmed that they would take effect on 1 August, which was later pushed to 7 August.

“The 30% tariff set by the US is unfortunate and presents a setback in resetting bilateral trade,” International Relations and Cooperation Minister Ronald Lamola told a media briefing earlier this week.

“We have been strengthening trade and investment partnerships with various trade partners. These efforts are bearing fruit, targeting markets across Africa, as well as in Asia, Europe, Middle East and the Americas.”

Affected sectors include agriculture, vehicle and textile — all of which have benefited from duty-free access under the African Growth and Opportunity Act (Agoa). The government has said it will not retaliate against the US but has acknowledged the urgent need for the country to diversify its export market.

“South Africa seeks to conclude deals that promote value addition and industrialisation rather than mimic extractive colonial-era trade patterns,” Lamola said, adding that talks with Washington were ongoing, with the government applying a principled approach through diplomatic channels.

He said the 30% tariff had been factored into economic projections, with economists estimating a 0.2% reduction in growth. “This depends on our ability to find alternative markets. Notably, 35% of exports remain exempted from the tariffs.”