US President Donald Trump announced a 30% tariff on South African goods, saying his country’s relationship with Pretoria has been, “unfortunately, far from reciprocal”. (X)
South Africa will not impose countermeasures against the United States over a 30% import tariff set to kick in on 1 August, and has said it will continue negotiations with the Trump administration, the department of trade, industry and competition said on Tuesday.
South Africa is among several countries facing punitive tariffs from the US as it moves to protect its own manufacturers and labour force. Economists have warned that the tariffs will hurt the local economy in the long-term, particularly the vehicle, agricultural and mineral sectors.
President Donald Trump announced the tariffs in April, but delayed them for 90 days to allow countries to negotiate better deals, but then confirmed in July that they would take effect on 1 August. Trump announced a 30% tariff on South African goods, saying his country’s relationship with Pretoria 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,” he said.
South Africa insists the tariff is based on a disputed interpretation of the balance of trade between the two countries, and says it will try to negotiate better terms with Washington.
The trade department said it “remains committed to the cause as we await substantive feedback from our US counterparts on the final status on our framework deal”.
“We have signed a condition precedent document and have readied our inputs for entry into the template which is to follow from the US.”
The department’s deal featured a number of areas, including importing 75 to 100 petajoules (one petajoule is the equivalent of 278 gigawatt hours) of liquified natural gas for a 10-year period, unlocking $12 billion; enabling agricultural market access by simplifying the US’s poultry exports under the 2016 tariff rate quota and unlocking about $91 million in trade, as well as readiness to open market access for blueberries subject to necessary protocols.
South African firms committed to investing $3.3 billion in US industries, including mining and metals recycling, “while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals and agri-machinery”, the department said.
In addition, South Africa’s deal proposed an exemption of specific sectors from reciprocal tariffs to preserve supply chains, such as ship building, counter-seasonal agriculture trade, and exports from micro, small and medium enterprises of less than $1 million a year.
The department said it has planned for the potential outcomes of the tariffs, and that its response package also focuses on demand side interventions in the affected industries.
The impending tariff introduced a fresh layer of uncertainty for local traders, with clear implications for currency and commodity markets, and that sentiment has shifted even ahead of implementation, analysts say.
“This kind of development shifts sentiment and drives short-term volatility. Traders are already watching the rand and commodity prices closely. A hit to exports puts pressure on trade flows, affecting the currency and related sectors,” said MJ Givens Kgasi, an analyst at Octa, an international online broker.
“The impact will not be limited to one chart or market. It is a reminder that political shifts can have financial consequences and that trading does not happen in isolation,” he said in a note.
“If you are trading rand pairs or commodities linked to South Africa, you need to be following more than just price. You need to understand what is driving it.”