South African business confidence weakened further in the third quarter of 2025, dragged down by steep U.S. tariffs on exports, according to a survey released on Wednesday.
Confidence slipped by one point from the previous quarter to 39, placing it three points below the long-term average of 42, the Rand Merchant Bank (RMB) survey compiled by the Bureau of Economic Research showed, Reuters reported.
The survey, conducted between August 6 and 25, overlapped with the introduction of a 30% tariff on Johannesburg’s U.S. exports.
South Africa’s Vehicle Exports To U.S. Crash Over 80% As Trump Tariffs Take Hold, the highest rate imposed on any Sub-Saharan African nation.
The period was also marked by production breaks and order cancellations in South Africa’s automotive sector.
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Despite these setbacks, the country’s experience mirrors that of other economies, said Isaah Mhlanga, Chief Economist at RMB.
“Last year brought significant political and economic policy changes in many countries, including South Africa, and following initial excitement, or in some cases, disappointment, conditions are normalising into a difficult emerging global world order,” he explained.
In contrast, a separate survey released the same day indicated South African businesses enjoyed a slight improvement in operating conditions in August, supported by easing cost pressures.
Meanwhile, the rand climbed to a nine-month high in late August, buoyed by a weaker U.S. dollar and recovering gold prices.
The move came after U.S. Federal Reserve Chair Jerome Powell signaled a possible interest rate cut at the Fed’s September meeting.
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Image Credit: Reuters
