In a move set to reshape trade relations between South Africa and the United States, US President Donald Trump has announced the imposition of a 30% tariff on all South African goods entering the US, effective from 1 August 2025. The decision, revealed in a letter addressed to President Cyril Ramaphosa and shared on Trump's Truth Social platform, cites concerns over "unsustainable Trade Deficits against the United States" and accuses South Africa of maintaining "Tariff, and Non Tariff, Policies and Trade Barriers" for many years.
Trump's letter stated: "We have had years to discuss our trading relationship with South Africa, and have concluded that we must move away from these long-term, and very persistent, trade deficits engendered by South Africa’s tariff, and non-tariff, policies and trade barriers. Our relationship has been, unfortunately, far from reciprocal. Starting on August 1, 2025, we will charge South Africa a Tariff of only 30% on any and all South African products sent to the United States, separate from all sectoral tariffs."
The US President further warned that any retaliatory tariff increases by South Africa would be met with a corresponding increase on top of the existing 30%. "Whatever the number you choose to raise them by, will be added onto the 30% that we charge," Trump wrote, framing the trade deficit as "a major threat to our Economy and, indeed, our National Security!"
It's worth noting that Trump's letter to Ramaphosa was one of several near-identical missives dispatched to leaders of other nations, including Japan, South Korea, Myanmar, Laos, Kazakhstan, and Malaysia, each outlining varying tariff rates. This suggests a broader strategy of employing tariffs to address perceived trade imbalances across multiple fronts.
This isn't the first time Trump has wielded the tariff weapon against South Africa. Back in April, he initially imposed a 30% tariff as part of his global "reciprocal" tariffs policy, before temporarily suspending it for 90 days to allow for bilateral negotiations. That 90-day pause was expected to end on 9 July, but the Trump administration has now extended the deadline to 1 August, although Trump has described this date as "not 100% firm".
The US goods trade deficit with South Africa was $8.8bn in 2024, a 29% increase from $2bn over 2023. According to the Office of the US Trade Representative, US goods exports to South Africa in 2024 were $5.8 billion, down 18.3% from 2023 while US goods imports from South Africa were up 4.9% to $14.7bn during the same period.
South Africa, like many other nations, has been actively seeking to negotiate trade deals with the US to avert these sweeping tariffs. A draft Framework Deal was presented to the US on 20 May, just a day before Ramaphosa's meeting with Trump at the White House in Washington. The proposal encompassed agreements on agriculture, critical minerals, automotive products, and other exports.
Just days before Trump's latest announcement, the Department of Trade, Industry and Competition (DTIC) indicated that South Africa had requested an extension of the 90-day pause, to allow for revisions to its proposed trade deal in line with the Trump administration's new template for US trade with sub-Saharan Africa. Trade and Industry Minister Parks Tau expressed optimism that trade discussions would continue beyond 9 July, citing indications from the US that there was still "room for engagement" on the matter.
Adding another layer of complexity, Trump also threatened to impose an additional 10% tariff on countries aligning themselves with the "anti-American policies" of BRICS, the bloc comprising Brazil, Russia, India, China, and South Africa, along with a handful of other nations. This threat was made on 6 July, according to a Reuters report.
Meeting in Rio de Janeiro, the BRICS bloc voiced "serious concerns about the rise of unilateral tariff and non-tariff measures" which, they said, "distort trade and are inconsistent with" World Trade Organisation rules.
In response to Trump's tariff announcement, President Ramaphosa's office issued a statement maintaining that a "30% reciprocal tariff is not an accurate representation of available trade data".
Presidency spokesperson Vincent Magwenya said: "This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States… In our interpretation of the available trade data, the average tariff [on] imported goods entering South Africa stands at 7.6%. Importantly, 56% of goods enter South Africa at 0% most favoured nation tariff, with 77% of US goods entering the South African market under the 0% duty."
Magwenya affirmed that South Africa would persist in its diplomatic efforts to secure a "more balanced and mutually beneficial trade relationship" with the US, welcoming the Trump administration's commitment to consider modifying the tariff rate following potential negotiations.
"South Africa has continued to engage the United States, most recently at a meeting held on the sidelines of the US-Africa Summit on June 2025, in Luanda. It was at this meeting where South Africa learned of a template with which the US wishes to engage sub-Saharan Africa on matters of trade," Magwenya said.
He added: "The South African negotiating team still awaits this template, however, President Ramaphosa has instructed the team [to] urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on 20 May 2025. This framework deal addresses the issues initially raised by the US, including South Africa’s supposed trade surplus, unfair trade practices and lack of reciprocity from the US."
Ramaphosa has also urged government trade negotiation teams and South African companies to "accelerate their diversification efforts in order to promote better resilience in both global supply chains and the South African economy".
Major South African exports to the U.S. include precious stones and metals, motor vehicles, parts and accessories; iron and steel, machinery; aluminium products, ores , organic chemicals, edible fruit, chemical products and nickel products.
Adding his voice to the matter during a media conference at the XVII BRICS Summit in Rio de Janeiro, President Ramaphosa responded to a question on Trump's threat to impose a 10% tariff on all countries that aligned themselves with BRICS. He argued that BRICS isn’t a threat to any other centres of power.
“There should never be vengeance, there should never be retribution, against countries that are seeking to cooperate together and to advance the interests of humanity,” he said.
As the 1 August deadline approaches, the future of trade relations between South Africa and the US hangs in the balance. Will diplomatic efforts succeed in averting the tariffs, or will South African businesses and consumers bear the brunt of Trump's protectionist policies?
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