Trade tariffs imposed by the US have significantly reduced South Africa’s export volumes, particularly passenger vehicles and parts, which are now subject to a 25% duty as well as steel and aluminium, which attract a 50% charge, the Reserve Bank said on Tuesday.
In its March quarterly bulletin, the Bank said reduced exports to the US have coincided with a rise in export volumes to countries such as Zimbabwe and Belgium, which absorbed some of the products previously destined for America.
After Washington’s relations with Pretoria deteriorated last year over policy differences, the US slapped a 30% reciprocal tariff on South African exports, listing it among several countries that President Donald Trump claimed had given his country a raw deal in trade for years.
The US Supreme Court ruled in February that the tariffs were illegal, but Trump immediately imposed a new 10% tariff using different legislation, soon after increasing it to 15%.
On Tuesday, the South African Reserve Bank said that after peaking at R193bn in 2021, the country’s exports to the US decreased to R156.8bn in 2024.
Excluding pearls, precious and semiprecious stones, the value of exports declined by 9.9% in the fourth quarter of 2025 after contracting 15.6% in the third quarter.
Without stripping these out, the value of exports to the US increased by 2.9% in the fourth quarter from 11.8% in the third, reflecting the strong impact of the surge in gold and platinum group metals (PGMs) prices.
Notable declines were recorded in the export values of vehicles and transport equipment, chemical products, prepared foodstuffs, beverages and tobacco as well as base metals.
“Similarly, South Africa’s export volumes to the US have been trending lower since the third quarter of 2024, largely reflecting the reduced export volumes of vehicles and transport equipment,” the Bank said.
‘Significant and disproportionate impact’
It said the tariffs had a “significant and disproportionate impact” on South Africa, contributing to a change in the composition of its exports to the US.
The compounding effects of the reciprocal tariffs alongside section 232 tariffs — which draw from the Trade Expansion Act and aim to protect US national security — particularly affected vehicles, aluminium and steel, reducing the competitiveness of these products in the US market.
“The value-added export sectors saw severe declines, while the mining sector, particularly PGMs, proved resilient, supported by the exemptions and high commodity prices,” the SARB said.
“Nonetheless, South Africa’s overall exports remained resilient as the loss of US exports was offset by the absorption of certain goods into new markets as well as being buffered by higher commodity prices.”
It said the US still ranked as South Africa’s third-largest trading partner after China and Germany in 2025, accounting for 7.1% of total exports and 6.8% of total imports of goods.
In the Brics group, South Africa’s export volumes to India and Brazil increased in the fourth quarter of 2025, but those to Russia fell.
There was also stronger growth in the export volumes of vehicles destined for Europe.
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