South Africa’s Minister of Trade, Industry and Competition, Parks Tau, has expressed concern over a sudden move by the United States to impose hefty tariffs on South African goods.
The announcement by U.S. President Donald Trump came unexpectedly, just days after what Tau described as productive and respectful engagements between U.S. and South African officials during meetings in Angola.
On Monday, the U.S. government revealed that a 30% import tariff on all South African goods would take effect starting August 1. The decision has sparked alarm among South African business leaders and trade experts, who fear that the move could severely damage the country’s export-driven sectors.
Economic analysts warn the new tariffs could put over 70,000 jobs at risk—especially in key industries like citrus farming, automotive manufacturing, and steel production.
Shaun Theunissen, founder of the inclusive economic development network Entrepreneurship to the Point (ETTP), stressed the potential human cost of the tariffs. He warned that unless the South African government can negotiate a rollback or exemption, the fallout could be devastating for workers already grappling with rising living costs, ongoing energy disruptions, and high unemployment.
“This isn’t just a policy issue,” Theunissen said. “It’s a matter of survival for thousands of families. A 31% tariff on key exports could collapse entire supply chains.”
The South African Citrus Growers Association has also sounded the alarm, noting that about 7,000 jobs—roughly 20% of the workforce tied to U.S. citrus exports—could vanish, particularly in vulnerable regions such as the Western Cape and Eastern Cape.
The automotive sector, which exports approximately R38 billion worth of vehicles and components annually and supports 120,000 jobs, also stands in the line of fire. Analysts estimate that reduced U.S. demand could lead to direct job losses of 10,000 to 15,000, with the broader impact—including suppliers—potentially displacing up to 45,000 workers.
The steel industry is similarly exposed. Companies like ArcelorMittal could be forced to cut around 3,500 jobs, with broader repercussions across the value chain possibly affecting up to 100,000 jobs, unless emergency trade relief or policy support is provided.
Theunissen explained that South African exporters depend heavily on revenue from international markets to keep operations afloat and workers employed.
“When exports stall, income collapses but expenses remain. That imbalance leads to retrenchments, halted investment, or outright business failures,” he said.
He added that the tariffs threaten not just jobs, but also the economic transformation efforts made in recent years. Without swift diplomatic intervention, South Africa could lose ground on key gains in inclusive growth and industrial development.
For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +44 7949 297606.
