South Africa Responds to US Tariffs with Multi-Pronged Economic Strategy

In response to the new 30% tariff imposed by the United States on August 7, 2025, the South African government has activated a comprehensive plan to protect its economy.

This multi-pronged approach focuses on international diplomacy, domestic support, and market diversification.

South Africa is prioritizing negotiations with the U.S. to reduce the tariffs. The government has approved a new offer that directly addresses concerns from the U.S. about sanitary and phytosanitary measures, particularly for exports like poultry, blueberries, and pork.

As a result of these ongoing talks, the USA-Africa Trade Desk has confirmed that U.S. poultry and pork shipments will be heading to South Africa, signaling a breakthrough in meeting bio-security protocols.

Additionally, South Africa, in partnership with the Southern African Customs Union, is evaluating potential tariff reductions in response to a request from the European Union, as part of the SADC-EU Economic Partnership Agreement.

Domestic Economic Support

To support local businesses affected by the tariffs, the government has launched an Economic Response Package. Key initiatives include:

Export Support Desk: An office to help affected companies, which has already assisted 23 businesses and engaged with over 54 exporters.

Localisation Support Fund (LSF) and Export and Competitiveness Support Programme (ECSP): These funds will provide crucial working capital and equipment support to vulnerable companies.

Collaboration with the Department of Employment and Labour: The government is working to use existing regulations to prevent potential job losses.

Block Exemption for Exporters: A new measure to allow competing companies to cooperate, with a draft expected soon.

The government is also accelerating its efforts to find new international markets beyond the U.S. South Africa is focusing on expanding trade in Asia, the Middle East, and Africa under the African Continental Free Trade Area (AfCFTA). This strategy aims to build long-term economic resilience and reduce dependence on a single market. The government is also promoting local production through initiatives like the Proudly South Africa’s Market Access Platform (MAP).

The government remains committed to protecting its agricultural exports to the U.S., which are valued at R9.8 billion ($537 million) and have increased by 104% since 2018. This underscores the importance of maintaining market access while simultaneously diversifying to safeguard rural jobs and ensure sustainable agricultural growth.