Ramaphosa
President Cyril Ramaphosa has voiced strong concerns over the United States’ decision to slap a 30% tariff on South African imports, saying it will hit key export sectors hard and calls for faster rollout of the African Continental Free Trade Area (AfCFTA) to protect the economy. In his weekly newsletter dated 4 August 2025, he stressed the need for quick adaptation in a shaky global trade scene, pointing out how these tariffs threaten jobs and growth in industries like agriculture, automotive, and textiles that once enjoyed duty-free access under the African Growth and Opportunity Act (AGOA).
Turbulent Trade Winds Hit South Africa Hard
The US tariffs, set to kick in on 7 August 2025 after a short delay from the original 1 August date, come as part of wider moves by the US to hike duties on goods from many countries, including Canada, Brazil, India, and Taiwan. South Africa, as the continent’s biggest economy, finds itself in the firing line with a flat 30% rate on all exports to the US, its second-largest trading partner. This shift ends the perks South Africa had under AGOA, which runs out on 30 September 2025, and could wipe out billions in trade value.
President Ramaphosa wrote: “The decision by the United States to impose a 30% tariff on South African imports highlights the urgency with which we have to adapt to increasingly turbulent headwinds in international trade.” He noted that the US is a major buyer, with two-way trade worth over R500 billion last year, but these new barriers will squeeze industries that rely on exporting there. Economists warn this could lead to about 100,000 job losses, mostly in farming and car-making, as higher costs make South African goods less competitive in the US market. The rand has already weakened, and the JSE took a knock as markets reacted to the news.
South Africa’s exports to the US do not clash with American producers; instead, they often supply raw materials or parts that boost US factories. For example, in agriculture, South Africa is the world’s second-biggest citrus exporter, sending oranges and lemons during the off-season when US farms struggle with low yields from citrus greening disease and other woes. These imports keep US shelves stocked and prices steady for shoppers there. Without them, US consumers could face higher costs and shortages. Ramaphosa highlighted: “South African exports do not compete with US producers and do not pose a threat to US industry. It remains our aspiration that this should continue. Largely, our exports are inputs into US industries and therefore support the United States’ industrial base.”
In the automotive sector, South Africa ships parts and vehicles that feed into US supply chains, helping keep American car plants running. Textiles, too, have grown under AGOA’s duty-free rules, creating jobs in local factories. But now, with the 30% hit, these sectors face tough times. The central bank predicts big drops in output, with farmers and manufacturers already scrambling to cut costs or find new buyers. South Africa is also the top African investor in the US, with 22 companies pumping money into mining, chemicals, pharmaceuticals, and food sectors, creating jobs on both sides.
Government Steps Up Engagement and Support
Ramaphosa made it clear that protecting export jobs is top priority. “Our foremost priority is protecting our export industries. We will continue to engage the US in an attempt to preserve market access for our products,” he said. Channels remain open, with South Africa tabling a revised trade proposal to boost ties and avoid the worst fallout. Trade Minister Parks Tau echoed this, saying the government is committed to talks while prepping for the long haul.
To help businesses cope, the Department of Trade, Industry and Competition has launched an Export Support Desk. This one-stop shop offers updates on tariff changes, advice on breaking into new markets, and guidance on entry rules. It targets exporters in hit sectors, helping them pivot to places like Africa, Asia, Europe, the Middle East, and existing trade partners. A support package is also in the works for vulnerable companies, farmers, and workers. Details will come soon, but it includes aid to explore fresh markets and cushion short-term losses. Ramaphosa added: “We will in due course be announcing the modalities of a support package for companies, producers and workers that have been rendered vulnerable by the US tariffs. This intervention will also play a key role in guiding industries looking to expand into new markets in the rest of Africa, Asia, the Middle East and markets we already have trade agreements with.”
South Africa is not alone—other nations like Lesotho face similar hits to textiles, while Algeria and Angola brace for energy sector woes. “It is important to understand that South Africa is not alone in facing high tariffs from the US. A number of export-reliant developed and developing economies, including several on the continent, are also grappling with these measures,” the President noted.
Pushing for Diversification and AfCFTA Speed-Up
To build a tougher economy, Ramaphosa urged speeding up diversification away from over-reliance on the US. “We must also accelerate the diversification of our export markets, particularly by deepening intra-African trade,” he said. The AfCFTA, which aims to create a massive single market for 1.4 billion people across Africa, is key here. By cutting tariffs and barriers among African countries, it can help South Africa sell more to neighbours, grow regional supply chains, and add value to exports instead of just raw goods. Full rollout could boost Africa’s GDP by trillions and lift millions out of poverty through better trade flows.
South Africa already eyes growth in Asia (like India and China), the Middle East (UAE and Gulf states), and beyond. For agriculture, this means pushing citrus, apples, pears, beef, berries, grapes, and meat to these spots. The government plans to ramp up trade missions and the National Exporter Development Programme to get more firms export-ready. “Strengthening regional value chains will be key to building resilience for our export markets in the longer term. Much as strengthening and establishing alternative value chains will take time, this moment presents us with an opportunity to push forward with the implementation and expansion of the African Continental Free Trade Area (AfCFTA),” Ramaphosa explained.
AGOA’s Legacy and the Road Ahead
AGOA, started in 2000, has been a game-changer for US-Africa trade, letting sub-Saharan countries ship over 1,800 products duty-free. South Africa kept its spot for 2025 despite tensions, but the expiry looms, pushing for new deals. Ramaphosa wrapped up: “The international trading system is changing. Complacency will not serve us, and building resilience is imperative. As government we remain committed to ongoing engagement with the US and building trade resilience.”
This tariff storm could spark real change, turning South Africa towards a more balanced, Africa-focused future. But it will need bold moves from leaders, businesses, and workers to weather the blow and emerge stronger.
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