SA is looking to diversify its trade partners in Asia and the Middle East as the reality of a changing global trade order, spurred on by the Trump administration’s protectionist measures, sets in.
US President Donald Trump’s announcement of unprecedented tariffs, which has spooked global markets, has necessitated the need for SA to look elsewhere for its exports, which may be under more favourable terms compared to those with the US.
The 31% tariff imposed by the US on SA exports is set to affect crucial sectors such as agriculture and processed goods, while exempting products already facing Section 232 tariffs of 25% such as steel, aluminium, vehicles and vehicle parts.
The levies are expected to come into effect on April 9.
The tariffs imposed also render SA’s preferential access to US markets under the African Growth and Opportunity Act (Agoa) obsolete. This is ahead of a review of the legislation by the US Congress in September 2025.
SA has been a part of the programme since its inception in 2000 and it covers about 20% of the country’s exports to the US.
“The reciprocal tariffs effectively nullify the preferences that Sub-Saharan African countries enjoy under Agoa. The sweeping tariff measures will affect several sectors of the SA economy, including the automotive industry, agriculture, processed food and beverages, chemicals, metals and other segments of manufacturing, with implications for jobs and growth,” international relations minister Ronald Lamola said on Friday.
“The US represented 7.45% of SA’s total exports in 2024, while SA accounted for only 0.4% of US total imports. As such, SA does not constitute a threat to the US and where there is a trade imbalance in favour of SA, it is mainly on agriculture products, which are counter-cyclical, and on minerals, which are inputs in US industries.
“SA enjoys preferential market access through the Southern Africa Customs Union (Sacu), South African Development Community (Sadc), Sadc-EU Economic Partnership Agreement (EPA), Sacu and Mozambique-UK EPA, the European Free Trade Association (EFTA), MERCUSUR (that includes Argentina, Brazil, Paraguay and Uruguay) and Japan Generalised System of Preferences. In addition, the government is strengthening relations with countries in Asia and the Middle East to open new market access opportunities,” Lamola said.
Lamola’s department and the trade, industry and competition department held a joint media briefing on Friday, outlining the government’s response to the tariffs.
“We have long started the process of diversifying our trade partners including in citrus. We had our own clarity dispute with the EU in regard to citrus because of the restrictions we believe are unrepeatable by the EU. We have continued to engage the US on our citrus and we have looked at alternative markets for our citrus growers. There are different markets we continue to work on,” trade, industry and competition minister Parks Tau said.
Though SA was not alone, the Trump administration’s move to impose tariffs on all its trading partners comes at a time when relations between the two countries are at their lowest with fears that Trump may impose sanctions on the country.
The US has already halted all aid, including health and climate funding to SA, citing SA’s land expropriation policies. Trump has also been critical of SA’s decision to take Israel to the International Criminal Court over genocide claims relating to the war in Gaza.
The SA government has pushed back against Trump’s moves while keeping diplomatic channels open for engagement.
In line with Trump’s move to provide humanitarian aid to white Afrikaners in the US, Republican congressman Troy Nehls introduced a new bill that aims to provide Afrikaners a pathway to US residency.
If passed, the Asylum for Farmers and Refugees in Crisis and Necessary Emigration Resettlement Act, or “Afrikaner Act” would designate Afrikaners as priority 2 refugees of special humanitarian concern.
Trump’s move has hit SA markets hard with the rand breaking through R19/$ on Friday, reaching its worst level in about a year. The JSE had R1.3-trillion wiped off its value on Thursday and Friday combined.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.