One Week to Disaster: South Africa Faces Looming 30% US Export Tariffs

How President Ramaphosa is fighting to save key industries and what comes next

South Africa stands on the brink of a major economic blow. In just seven days, a 30% tariff on exports to the United States threatens to shake the backbone of several vital industries. President Cyril Ramaphosa is speaking openly about the serious risks, but also about the country’s urgent efforts to find a way out.

A Tariff Threat Turning the Economy Upside Down

The prospect of these tariffs hitting South African exports has unsettled producers across the country. Ramaphosa candidly told journalists, “The tariffs from the US obviously have turned the world upside down.” For South Africa, the US isn’t just another trading partner , it accounts for about 8% of total exports, which translates to roughly R157 billion in trade.

The hit will be felt hardest in industries like automotive manufacturing, agriculture, and mining. The automotive sector alone accounts for over R34 billion in exports to the US and has been battling its own challenges amid existing tariffs and the threat of losing access to the African Growth and Opportunity Act (AGOA) by year-end.

This is not a sudden shock. Since early April, South African businesses have been watching anxiously as the Trump administration’s “Liberation Day” tariff announcement set a ticking clock. After initially planning to start tariffs on 9 April, the US paused for 90 days to allow negotiations, a window that President Ramaphosa and his delegation seized during their May visit to Washington.

Negotiations in Progress but Time Is Running Out

Despite the high-level talks, little concrete progress has emerged publicly. The Department of Trade and Industry has reportedly offered new proposals, but some reports suggested South Africa’s team was left waiting for responses.

Ramaphosa pushes back against this narrative: “We are talking to them and they’re talking to us. We are exchanging a whole lot of ideas and proposals.” Yet he admits, “Time is of the essence,” and that the clock is ticking faster than many would like.

Social media reflects a mix of anxiety and frustration, with many South Africans debating the government’s handling of the crisis. Some call for greater transparency and faster action, while others lament the country’s dependence on volatile global trade relationships.

The Need for a Plan B: Beyond the US Market

Even as talks continue, President Ramaphosa and business leaders are preparing for the possibility that tariffs may be imposed. Business Leadership South Africa CEO Busi Mavuso has called for immediate government support mechanisms, similar to the Covid-19 relief schemes like TERS, to help industries survive the shock.

“There must be a tariff impact fund to support viable companies through this transition,” she said, highlighting the urgent need for safety nets.

Meanwhile, long-term solutions are also on the table. Economists argue that South Africa must urgently diversify its trade portfolio. Ramaphosa agrees, pointing out Africa itself offers “a very big tariff-free opportunity” and that trade missions are actively scouting new markets worldwide.

Countries like India and China stand out as promising buyers for South African agriculture and minerals. The message is clear: survival depends on adaptability.

A Critical Moment for South Africa’s Economy and Its People

This looming tariff crisis isn’t just about numbers or trade policies. It’s about jobs, livelihoods, and communities. The industries at risk employ thousands and support families across South Africa.

The president’s efforts to keep the US dialogue open are vital, but the clock is unforgiving. What happens in the coming week could define South Africa’s economic trajectory for years to come.

In the meantime, South Africans watch, hope, and prepare for whatever lies ahead.

{Source: BusinessTech}

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