Pretoria is treating a 30% US tariff on SA exports as a fait accompli, triggering a contingency plan to keep SA’s production lines moving in key sectors.
The punishing tariff wall ushers in new trade relations. Pretoria is also concerned that the new levies could deter investment and accelerate capital flight, particularly at a time when SA is seeking to boost industrial output, lift the economy and put millions into jobs.
These emergency measures, led by the launch of an export support desk, come amid mounting pressure on strategic industries such as automotive manufacturing, steel, agro-processing and chemicals.
These sectors risk losing competitiveness in the US market, SA’s second-largest trading partner, once the export duties come into effect.
The support desk will serve as a one-stop contact point for exporters, providing real-time updates, guidance on compliance, and support in pivoting to alternative markets across Africa, Asia, the EU and Latin America.
“The desk will provide updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African embassies and high commissions abroad,” the trade industry & competition department said.
“This tariff hike poses a direct threat to our export capacity, particularly in strategic sectors such as automotive, agro-processing, steel, and chemicals amongst others.”
Business Day previously reported that the government was also considering offering the motor vehicle and agricultural sectors alternative markets and possible Treasury-backed tax incentives.
The new trade regime has also ruffled feathers in the government of national unity, with the DA accusing the trade, industry & competition department and the ANC of failing to recalibrate SA’s posture towards the US.
“The ANC has done very little to build trust and confidence to protect our trade relationship, protect foreign direct investments, and protect exports to the US. The DA has repeatedly called for an ANC change of heart towards the US in order to protect our economy and jobs,” DA MP Toby Chance said.
In a sharp rebuttal, Tau lashed out at the DA, criticising the party for what he called “reckless” commentary that undermined sensitive negotiations with the US.
“This is downright irresponsible for a party in government,” he said.
The criticism follows recent turmoil in theDA’s ranks. Emma Powell resigned as the party’s spokesperson on international relations last month, amid growing internal discord over foreign policy.
The DA’s Eastern Cape leader, Andrew Whitfield, was fired by President Cyril Ramaphosa as deputy minister in the department of trade, industry & competition after taking an unauthorised trip to the US in February along with Powell. This visit further strained negotiations with Washington, Business Day understands.
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