South Africa has expressed serious concern over the economic impact of new U.S. trade tariffs, warning that the imposed 30 percent reciprocal duties could jeopardize tens of thousands of local jobs across key industries.
In a statement on Monday, Trade and Industry Minister, through Simphiwe Hamilton, Director-General of the Department of Trade, Industry and Competition, said the government had consulted widely with sectors likely to be affected—including agriculture and automotive — and fears significant job losses if the issue is not carefully managed.
“We’ve based this on the ongoing consultations that we have with all the sectors of the economy, from automotive, agriculture and all the other sectors that are going to be impacted,” said Hamilton.
“At this stage we are sitting at approximately 30,000 jobs that could be affected by this, if it were to be mismanaged in any manner,” he added.
The warning follows an executive order signed last Thursday by U.S. President Donald Trump, which confirmed the implementation of increased tariff rates on multiple countries. The decision was made just before the 1 August deadline he had given for negotiations to yield favorable terms.
While some countries managed to secure adjusted rates, South Africa’s tariff remained fixed at 30 percent, one of the highest levies issued by the U.S. administration, placing it among the top five most affected nations.
The United States is currently South Africa’s third-largest trading partner, accounting for 7.5 percent of total exports. China stands at 11 percent, while the European Union leads at 17 percent.
South Africa’s automotive and agricultural sectors, major contributors to GDP and employment, are expected to bear the brunt of the new trade measures. This development adds further strain to an already fragile labor market, with unemployment standing at 32.9 per cent in the first quarter of 2025, according to data from Statistics South Africa (StatsSA).
In response, the South African government is working to develop a suite of countermeasures aimed at cushioning the blow for exporters. These include multilateral engagements with affected countries, intensified diplomatic efforts with the U.S., and support mechanisms for local businesses.
The new tariffs are scheduled to take effect on 8 August.
