South Africa has come out to plead with the United States and President Donald Trump to be graceful with his tariffs.
On Tuesday, the country’s trade ministry said that it is trying to negotiate a trade deal with the US before the reciprocal tariffs, which Trump announced in April, kick in on July 9.
ICYMI: Like Lesotho, South Africa was one of the worst hit African countries in Trump’s new tariff regime. If it kicks in, South Africa will pay 31% extra on all goods to export to the US.
This is bad for business as the South Africa-US is one of the country’s most important trade corridors. In 2024, 8.2% of all South African exports—the second-largest after China—went to the US.
South Africa is a major producer of pearls, metal stone ores, vehicle parts, and agricultural produce like citrus. As a result, the mining and citrus industries, which employ over a combined 235,000 employees, are two key sectors that could get caught in the Trump rampage. Prices of items made from pearls and precious stones—including jewellery and ornamental pieces—that get imported back to South Africa, could become more expensive.
With the high cost, manufacturers of vehicle parts could consider selling sideways to local car-makers instead. If this happens at scale, it could drive down prices for consumers due to the locally-sourced parts, but quality may lag as local standards catch up to vehicle parts imported from the likes of Japan or Germany. The economy could also suffer from the repressed economic activity.
Zoom out: South Africa could aggressively pursue a trade deal. But there’s no guarantee the US will agree to anything. Like Lesotho, South Africa could offer a quid pro quo to accelerate the deal.
