Small and medium enterprises brace for impact as Trump tariffs loom

SOUTH African small and medium enterprises (SMEs) stand at a critical crossroads, grappling with the looming spectre of a 30% import tariff on most goods entering the United States.

- ASHLEY LECHMAN

This decision, signed into effect by President Donald Trump, will come into play on 1 August 2025, raising alarm bells for several sectors, particularly agriculture, automotive, and mining, industries heavily reliant on exports to the US market.

The consequences of these tariffs threaten to reverberate throughout the broader economy, with experts warning of potential job losses in the thousands.

Miguel da Silva, Group Executive of Business Banking at TymeBank, pointed to the tariff implications as not just an isolated issue but rather a reflection of the shifting geopolitical landscape that South Africa must navigate.

"As a nation, we have to rethink our trade strategies in light of these developments," da Silva said.

In response to these challenges, President Cyril Ramaphosa has urged South African companies to expedite their search for alternative export markets, highlighting the urgent need to bolster resilience in global supply chains and support the local economy.