U.S. Tariffs Threaten 30,000 Jobs in South Africa

JOHANNESBURG (AP) — South African authorities announced on Monday that approximately 30,000 jobs are at risk due to imminent U.S. reciprocal tariffs. These tariffs, amounting to 30%, are set to take effect four days from now, impacting a wide range of imports from South Africa.

Impact of the Tariffs

The United States, which ranks as South Africa’s third-largest trading partner, has implemented one of the highest tariff rates in a move that raises serious concerns for various export industries. With major trade partners such as China and the EU already in the picture, the looming tariffs compel South Africa to urgently seek new markets beyond the U.S. The tariffs are scheduled to come into force on August 8.

Government Response and Job Risks

In a recent update regarding the mitigation measures, Simphiwe Hamilton, director-general of the Department of Trade, Industry and Competition, emphasized the significant threat posed by these tariffs. “We base this on the ongoing consultations with all sectors of the economy from automotive to agriculture, all of which will be impacted,” Hamilton stated.

South Africa is already grappling with high unemployment rates, which stood at 32.9% in the first quarter of 2025, according to StatsSA, the national statistical agency. The youth unemployment rate has reached a concerning 46.1% in the same period, further highlighting the urgency of the situation.

Presidential Remarks on Trade Relations

In a weekly public letter, President Cyril Ramaphosa underscored the necessity for South Africa to adapt swiftly to the impending tariffs, pointing out the potential impact on the economy and industries reliant on U.S. exports. “As a government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. Our foremost priority is protecting our export industries,” he expressed.

Complicated Diplomatic Negotiations

Negotiations with the U.S. have proven to be unprecedented and complicated. The South African government has denied claims that the absence of an ambassador has hindered talks. Ebrahim Rasool, South Africa’s former ambassador to Washington, was expelled by the Trump administration earlier this year.

Exemptions and Diversification Efforts

While the U.S. accounts for 7.5% of South Africa’s global exports, certain sectors comprising 35% of these exports remain immune from the new tariffs. These include crucial industries such as copper, pharmaceuticals, semiconductors, and energy products.

Amid the uncertainty, the South African government is actively working to diversify its export markets, particularly by strengthening intra-African trade. Opportunities have been identified in several regions, including Asia and the Middle East, with countries such as the UAE, Qatar, and Saudi Arabia emerging as high-growth potential markets.

Export Support Initiatives

To assist local manufacturers and exporters, the government has established an Export Support Desk aimed at identifying alternative markets. Business Leadership South Africa, an independent association representing notable businesses, welcomed this initiative but also called for a trade crisis committee to facilitate faster, coordinated action among business leaders and government officials.

BLSA further stated, “U.S. tariffs pose a severe threat to South Africa’s manufacturing and farming sectors, particularly in the Eastern Cape. While businesses can eventually adapt, urgent temporary support is essential.”