South Africa could face the loss of up to 100,000 jobs as a result of newly imposed U.S. tariffs, particularly in the agriculture and automotive sectors, according to central bank governor Lesetja Kganyago. The warning comes as a 30% tariff on South African imports is set to take effect on August 1 under the administration of U.S. President Donald Trump.
Speaking on local radio station 702, Kganyago said the impending tariffs pose a serious threat to two of the country’s most employment-intensive industries.
“The impact in agriculture could actually be quite devastating because agriculture employs a lot of low-skilled workers, and here the impact is on citrus fruit, table grapes and wines,” Kganyago explained.
He added that recent figures showing an 80% plunge in South African car exports to the U.S., following auto tariffs introduced in April, were cause for alarm.
“If we do not find alternative measures, the impact on jobs could be around 100,000, so that is what we actually face,” the governor warned.
The forecast comes at a time when South Africa is already grappling with one of the highest unemployment rates globally. As of the first quarter of this year, the official unemployment rate stood at 32.9%, with the expanded definition—accounting for discouraged job seekers—rising to 43.1%.
Farmer organizations have also raised red flags about the consequences of the tariffs, warning that producers of citrus, macadamia nuts, grapes, wine, fruit juices, and ostrich leather stand to lose access to one of their most valuable markets.
In the citrus industry alone, an estimated 35,000 jobs are at risk. Rural towns like Citrusdal in the Western Cape—where much of the local economy depends on exports to the U.S.—could be particularly hard-hit.
As the August 1 deadline approaches, government officials and industry leaders are calling for urgent interventions to cushion the blow and secure alternative markets for affected exports.
