South Africa announced on Friday it is preparing new measures to support exporters impacted by U.S. President Donald Trump’s latest 30% tariff, which is expected to cause widespread job losses, especially in the country’s automotive and agriculture sectors.
The trade ministry has launched an “Export Support Desk” to help affected companies navigate the fallout and explore alternative markets.
Trade Minister Parks Tau described the situation as “a trying moment for South Africa.”
The tariff hike, part of an executive order signed by Trump on Thursday, will take effect in seven days and affects dozens of countries as part of the U.S. president’s effort to reshape global trade in America’s favor.
“All channels of communication remain open to engage with the U.S., and our negotiators are ready pending invitation from the U.S.,” President Cyril Ramaphosa said in a statement on Friday.
He also confirmed that the government is finalizing a support package for vulnerable exporters, with further details to be announced soon.
For months, South Africa tried to negotiate a deal with Washington (Ramaphosa Seeks Extended Talks As Trump’s Tariff Deadline Nears), offering to buy U.S. liquefied natural gas and invest in American industries in exchange for a reduced tariff rate.
But Trump’s administration did not respond to the proposal.
The talks were further complicated by ongoing tensions between the two countries over South Africa’s foreign policy and domestic affirmative action laws, which Trump has criticized.
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The United States is South Africa’s second-largest trading partner after China.
Major exports to the U.S. include vehicles, iron and steel, wine, and citrus fruit.
Mercedes-Benz South Africa is among the country’s key automotive exporters to the American market.
Not everyone is convinced that the Export Support Desk is a sufficient response.
The Democratic Alliance, South Africa’s second-largest political party, called the initiative “laughable.”
Meanwhile, the impact of the tariffs is already being felt in the auto sector.
One industry group warned the situation could turn into a “socio-economic crisis.”
The South African Reserve Bank has estimated that up to 100,000 jobs could be lost as a result of the tariff hike, mostly in the agriculture and automotive industries.
Citrus producers, who rely heavily on U.S. markets, say finding new buyers in Asia would be difficult due to different consumer preferences for fruit varieties.
The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) also raised alarm over the risks to exports, which were valued at $1.8 billion last year.
“If one considers that access to the U.S. was through AGOA, which was tariff-free, increasing tariffs to 30% effectively nullifies that market,” said SEIFSA CEO Tafadzwa Chibanguza, referring to the African Growth and Opportunity Act that previously allowed tariff-free access to the U.S. for eligible African exports.
Chibanguza warned that other nations, like Indonesia, which have negotiated better trade terms with the U.S., could quickly replace South African exporters.
“Once those export trends and relationships cement, even if you fix things in South Africa, you are unlikely then to take market share from those countries,” he told Reuters.
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Image Credit: Swaziland Democratic News
