Tariffs a wake-up call for black-owned firms

The country’s SMEs face a steep uphill battle

- By Andile Shongwe

South Africa's trade landscape is shifting beneath our feet. The recent wave of tariffs from the US on South African exports has exposed longstanding weaknesses in our economy - weaknesses that fall hardest on black-owned businesses.

These developments are not just a policy concern. They are a direct threat to the future of inclusive economic growth.

For too long, South Africa has relied on a narrow range of trade relationships. The US, Europe and a handful of global blocs have dominated our exports for decades. These ties have helped fuel growth, but they have also created a dangerous dependency. When political winds change or trade disputes erupt - as we are seeing now - South African businesses are left scrambling.

The new US tariffs, in some cases exceeding 30%, target critical agricultural exports. Larger companies may be able to weather the storm. But black-owned small and medium-sized enterprises (SMEs), which often lack access to capital, strong institutional networks and support, face a far steeper uphill battle.

These businesses are more exposed to sudden shocks. When markets are cut off or trade becomes unaffordable, revenue dries up, workers are laid off, and dreams of upward mobility are put on hold. This is why export diversification is no longer a luxury. It is an urgent necessity.