SA races to avert US tariffs as Ramaphosa pushes for Trade Deal

image: GCIS

by Kelebogile Matlou

President Cyril Ramaphosa has confirmed that South Africa will continue high-level negotiations with the United States throughout the coming week, aiming to protect the country’s economic interests amid impending US import tariffs. This follows the Trump administration’s decision to revise the Harmonized Tariff Schedule, which will impose a 30% tariff on certain South African exports to the US.

Originally set to take effect on 1 August 2025, the implementation has been pushed to 12:01 EDT on 7 August 2025, giving both nations a critical window for further discussions. While some sectors such as pharmaceuticals, semiconductors, copper, and energy products will remain exempt under previous US Executive Orders, industries like agriculture, mining, and automotive manufacturing are set to feel the brunt of the new tariffs.

President Ramaphosa assured the public on Friday that diplomatic channels remain open and that a Framework Deal has already been submitted to the US, aimed at strengthening mutual trade and investment. He said the government is also preparing a support package to shield vulnerable companies and workers from the adverse impact of these new trade measures.

“In the meantime, the government is finalising a package to support companies that are vulnerable to the reciprocal tariffs. The package consists of a number of measures to assist companies, producers and workers affected by the tariffs on SA exports to the US. The details of the measures will be announced in due course,” said Ramaphosa.

South Africa exports billions of rands’ worth of goods to the US each year, including fruit, vegetables, wine, meat, and precious metals all of which employ thousands of South Africans. The new tariffs threaten to make these products uncompetitive in the American market, posing a serious threat to jobs and industry survival.

The president emphasised that South African goods do not endanger US industry, noting that many exports include inputs from other African countries, thus supporting intra-African trade. “To this end, the government will intensify its diversification strategy to create resilience of our economy and is working with export councils and industry associations, as well as top exporters to the US with a view to assist with alternative markets,” Ramaphosa said.

An Export Support Desk has been established to provide exporters with updates and advisory services, with more information to be made available on the website of the Department of Trade, Industry and Competition. Additionally, US authorities clarified that goods already loaded on vessels before 7 August will be exempt from the new duties, offering a narrow reprieve to exporters currently shipping goods.