The JSE fell the most since June 13 in intraday trade on Friday as investors reacted nervously to the expiration of a key deadline to avert a new US tariff on SA exports.
The long-threatened 30% tariff — set to take effect in just seven days — sparked a broad sell-off, with most indices falling more than 1% by midmorning.
The losses come just days after the all share reached a historic milestone when hitting the 100,000-point mark. Market optimism quickly gave way to caution as traders began pricing in the economic effect of the impending US tariffs.
The all share, which ended July more than 2% higher, was down 1.37% to 97,170 points by midday on Friday.
“Uncertainty around the extent and effect of tariffs remains elevated, weighing on confidence and investment decisions,” Investec economist Lara Hodes said.
The banking sector was the worst performer on the local bourse in intraday trade on Friday, down 1.89%, with financials not far behind.
“The decline appears to be driven by a combination of domestic monetary policy changes and external economic risks such as the US’ tariffs on imports from SA,” Regenesys Investment Fund trader Neelan Gungudoo said.
“While lower interest rates can boost growth, they also compress bank margins, particularly net interest income, which is one of their major sources of revenue,” Gungudoo said.
The Trade Conditions Survey published by the SA Chamber of Commerce and Industry (Sacci) for May and June 2025 highlighted a trade environment facing substantial pressure. Only 46% of survey respondents reported feeling positive about their trade experience during these months, compared to 56% in March — a drop that highlights how tariff fears and broader global trade pressures are eroding business confidence in SA.
Trade, industry and competition minister Parks Tau has acknowledged the significant risks posed by the US tariffs, pointing to government efforts to diversify export markets and support the most exposed industries. With the US remaining SA’s second-largest trading partner, the near-term economic effect is expected to be considerable.
By market close the all share was down 0.79% to 97,744 points, while the rand had reversed course to end the day 0.73% firmer at R18.03/$.
Note: Friday August 1
This story has been updated with closing figures for the JSE and rand.
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