The US will add a 30% tax on all South African goods from August 1, 2025. Many in South Africa are worried, especially since Ramaphosa just met with the US president to improve relations.
The tariff decision was shared in a formal letter sent by President Donald Trump to Ramaphosa on 7 July. The letter accuses South Africa of keeping long-standing trade barriers and says these barriers have led to unfair trade deficits against the United States.
According to the letter, the new tariffs will apply to all South African exports, regardless of existing trade agreements. This includes goods such as cars, minerals, and farm products.
Analysts Question the Success of Ramaphosaโs US Visit
Political analyst Professor Sipho Seepe said this tariff proves that Ramaphosaโs recent trip to the US was not a success. He called the visit โplain nonsenseโ and said it was clear from the start that Donald Trump had no real interest in improving ties.
During the visit, Trump even played a video clip of EFF leader Julius Malema chanting โKill the Boerโ and accused him of inciting violence. He asked for Malema to be arrested, but South African officials rejected the claim, saying it was political speech, not a crime.
Seepe believes that Trumpโs strong dislike for South Africaโs land reform policies played a big role in this tariff move. He said Ramaphosa appeared weak during the visit and failed to make a strong case for South Africaโs interests.
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Land Reform and Trade Tensions
US officials say the main reason for the tariff is South Africaโs land policy. Former President Trump has criticised the plan, saying it takes land from white farmers. The South African government has denied this, saying the land reforms are legal and fair.
Trumpโs administration has also expressed concern over violence in rural areas, including farm attacks. These issues have added to the growing tension between the two countries. In February, the US also cut funding for HIV/AIDS programmes in South Africa, another sign that relations are under strain.
South Africa Responds to the Tariff Decision
Presidential spokesperson Vincent Magwenya confirmed that South Africa received the official letter. He said the government believes that the US has misread the trade data.
According to Magwenya, 56% of goods imported into South Africa enter with zero tariffs, and 77% of US goods come into the South African market without any duty. He said this proves that South Africa is not the one with unfair barriers.
He added that the two countries are now in talks to fix the issue. The US has agreed that the 30% tariff can still be changed if both sides reach an agreement before the start date.
Impact on Jobs and Key Sectors
The new tariff will hit mining, vehicle manufacturing, and agriculture the hardest. Citrus exports will be especially affected.
Farmers and industry groups are warning that this tariff could lead to job losses, especially in rural communities that depend on trade with the US. For example, the citrus sector alone supports over 35,000 jobs.
Sector | Export Value to US | Jobs at Risk |
---|---|---|
Citrus farming | R1.8 billion | 35,000 |
Auto industry | R36 billion | 10,000+ |
Mining products | R72 billion | Thousands more |
Industry leaders are calling on the government to act quickly. They want clear answers on how South Africa will protect these jobs and keep exports flowing.
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Hi, Iโm Amandeep Singh, a content writer at Ramnath Intercollage. I share updates on jobs, internships, and scholarships across South Africa using official and trusted sources. My aim is to make every post easy to read and helpful for anyone looking to apply.