Trump Tariffs: What’s the Plan, Mr. President?

ActionSA expresses serious alarm following the announcement by US President Donald Trump, who stated on 7 July 2025 via Truth Social that, effective 1 August, a 30% tariff will be imposed on all South African exports to the United States.

This decision comes despite repeated overtures by Pretoria, including high-level discussions during May’s Oval Office meeting and Trade and Industry Minister Parks Tau’s assurances, that the tariffs could be averted. The imposition not only jeopardizes South African businesses, workers, and households but also underscores the government’s continued failure to secure a viable trade solution after previously strained negotiations left the tariffs on hold since April.

While President Trump’s claim that the United States “can no longer afford to run a trade deficit with South Africa” runs counter to basic economic principles and established trade norms, it is clear that the imposition of these tariffs is about more than economics. Rather, it reflects a political response to South Africa’s alignment with nations that the United States regards as pariah states or adversaries. That our government has chosen ideological loyalty over national interest has now come at an immense cost.

South Africa is one of 14 countries arbitrarily targeted under this policy, a reflection of Washington’s confused frustration and a warning that the global consequences of foreign policy missteps will no longer be ignored. But make no mistake: the brunt of this misguided policy will not be borne in government boardrooms, but in the orchards, mines and factories of our nation. It is ordinary South Africans who will suffer job losses, reduced earnings, and heightened insecurity as a result of government inaction and diplomatic failure.

The United States is South Africa’s second-largest export market after China, with R157 billion worth of goods exported in 2024 alone. These exports, primarily precious metals, vehicles, iron and steel, and aluminium, now face severe headwinds under the 30% tariff regime. For sectors like automotive manufacturing, where over 25,000 vehicles were shipped to the US last year, this translates into immediate competitiveness losses, job risks, and potential factory slowdowns or shutdowns.

Compounding the damage is the uncertainty surrounding the African Growth and Opportunity Act (AGOA), which has long provided duty-free access for South African agricultural exports such as citrus, avocados, wine, and nuts. These benefits have been vital to the success of emerging and smallholder farmers. The new tariffs threaten to undo this progress, undermining both rural livelihoods and South Africa’s food-export potential. Critical industries like steel, aluminium, and agriculture now face an increasingly uncertain future, made worse by the government’s failure to shield these sectors through proactive diplomacy.

The new tariffs risk further choking South Africa’s already anaemic economic growth and could destabilise critical export-driven sectors. While blame will no doubt be shuffled between the Presidency, the Department of Trade, Industry and Competition, and International Relations, this government of national unity cannot escape responsibility for its failure to defend the interests of the South African economy. This is a betrayal of the working people who depend on international trade for jobs and income. ActionSA calls on President Ramaphosa to urgently address this crisis, provide full transparency on what has been done – and not done – to prevent it, and present a clear plan to mitigate the damage already unfolding.

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