SA entered diplomatic crunch time on Tuesday, racing against an August deadline to sway Washington from imposing steep new tariffs as US President Donald Trump’s trade broadside threatens to upend billions in export revenue.
Though the Trump administration has announced a blanket 30% tariff on SA exports, excluding select sector-specific duties, Pretoria remains hopeful that there is still diplomatic space to negotiate a reprieve. Officials warn the tariffs, set to take effect on August 1, could severely undercut the competitiveness of SA goods in the US market, dealing a blow to export industries.
"The 30% tariff is subject to modification at the back of the conclusion of our negotiations with the US," President Cyril Ramaphosa said in response to the announcement by Trump on Monday regarding the reciprocal tariffs.
SA has benefited from preferential access to US markets under the African Growth & Opportunity Act (Agoa), but that arrangement has come under increasing scrutiny as the US seeks to realign trade relationships around reciprocity.
Delivering his budget vote speech in the National Assembly, agriculture minister John Steenhuisen said SA could breathe a sigh of relief that the tariff hike would not come into effect immediately. It could use the next few weeks as an opportunity to try to negotiate a way forward to prevent it.
"I look forward to working with [trade, industry & competition] minister [Parks] Tau and others in the coming weeks to urgently seek a way through this impasse and ensure that we can avoid a 30% tariff increase for the agriculture sector," Steenhuisen said.
"While not explicit the announcement would signal the end to the African Growth & Opportunity Act, which gives SA duty free access to the US for more than 6,000 products, including goods and automobiles, agriculture and textile industries. The agriculture sector remains particularly exposed in the areas of citrus, wine, nuts and table grapes. Now more than before it highlights the need for urgent reform in SA so that we can ensure that our economy meets the requirements of our trading partners around the world."
XA Global Trade Advisors CEO Donald MacKay said the tariffs imposed by the US might be a result of Trump trying to penalise SA. That is despite previous diplomatic efforts by SA to normalise the relations.
"The trade relations with the US are null and void. They are still open to offers … [Trump] is using this to create some sort of urgency," MacKay said.
"It is key that the UIF’s Ters [Temporary Employer/Employee Relief Scheme] administrative challenges be urgently addressed to offer affected companies support while they put in place plans to manage this potential calamity," Cosatu president Zingiswa Losi said.
The government has called on the US to provide a formal response to its trade offer and request for a 90-day extension to negotiate a new trade deal.
The department of trade, industry & competition said is seeking a meeting with its counterparts in the US to get clarity.
"We are urgently seeking a meeting with the team from the US to understand the decision," Tau’s spokesperson, Kaamil Alli, told Business Day on Tuesday. "They have not commented on our proposed deal and we would like to get an understanding of why that is or what we need to alter."
Combative letter
In a combative letter addressed to Ramaphosa and posted on his Truth First social media platform on Monday, Trump claimed his country’s "significant trade deficit" with SA was "a major threat" to its economy and national security.
The US is a key market for SA exports, accounting for 8.5% of the total. In 2024, about a third of the exports enjoyed preferential access through Agoa.
The US president said the blanket levy — imposed "on any and all SA products sent into the US, separate from all sectoral tariffs" — was designed to correct "many years" of tariff and non-tariff barriers that had left trade "far from reciprocal".
The move ends a 90-day pause Trump granted in April, when he first threatened action and slapped an immediate 30% duty on certain SA goods.
Officials in Pretoria had pleaded for a further extension while negotiating exemptions for exports such as vehicles, steel and aluminium.
SA joined other African countries in requesting a 90-day extension "to enable countries to prepare their proposed deals in accordance with the new template".
The request was reiterated by deputy trade, industry & competition minister Zuko Godlimpi to Constance Hamilton, assistant US trade representative responsible for Africa, on the sidelines of the US-Africa Summit in Luanda, Angola, in June.
The previous trade proposal submitted to the US in May before the Oval Office meeting between Trump and Ramaphosa included deals on energy and electricity, critical minerals and other exports, including cars and agricultural products.
"SA is also seeking the maximum tariff application of 10%, as a worst-case situation," the department of trade, industry & competition said last week.
But it seems these pleas failed.
Trump hinted the 30% rate could rise if SA retaliated. "If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge.
"If you wish to open your heretofore closed trading markets to the US, and eliminate your tariff, nontariff, policies and trade barriers, we will, perhaps, consider an adjustment to this letter. These tariffs may be modified, upward or downward, depending on our relationship with your country."
Earlier, Trump also threatened an extra 10% tariff on Brics countries.
Update: July 8 2025
This story has been updated with further information.
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