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South Africa Tables New US Trade Deal Offer to Ease Painful 30% Tariffs

Published

2 months ago

August 13, 2025

Chiraag

South Africa revised US trade deal, 30% US tariffs, Parks Tau press conference, John Steenhuisen trade comments, Trump trade policy impact, poultry and pork exports, Joburg ETC

South Africa has put a fresh proposal on the table in Washington, hoping it will be enough to convince the United States to ease the 30% tariffs that have hit local exporters hard.

Trade Minister Parks Tau confirmed that Cabinet had approved a revised offer to be sent on Tuesday, describing it as a new basis for negotiations after months of deadlock. The move comes a week after US President Donald Trump’s administration slapped the country with the steepest tariff rate in sub-Saharan Africa.

Tau said the offer directly responds to points raised in the 2025 US National Trade Estimates Report, including previously contentious sanitary and phytosanitary requirements. These, he noted, have now been resolved, with containers of US poultry and pork already cleared for shipment to South Africa within two weeks.

A deal with higher stakes than ever

The tariffs have landed at a sensitive time. South Africa’s economy is growing at a sluggish pace, unemployment is climbing, and the export sector is already under pressure from load shedding and global competition. Analysts warn that keeping the 30% rate in place for long could mean job losses in agriculture, vehicle manufacturing, and steel sectors that depend heavily on the US market.

Agriculture Minister John Steenhuisen, who also leads the second-biggest party in the coalition government, called the new offer “broad, generous, and open” and argued it meets the ambition level the US has been demanding. “If one were to look at this through the trade and tariff perspective, I think this offer represents something that would be good for the United States and also good for South Africa,” he said.

Politics in the mix

In a Reuters interview, Steenhuisen suggested there may still be political hurdles. He noted that Trump has criticised certain domestic policies in South Africa, including affirmative action, and warned that tariffs might stay unless some of these laws change.

It is not yet clear whether Washington will view the revised deal as enough to lift or reduce the tariffs, but the stakes are high. For South African businesses that export to the US, every week under the current rates means higher costs, lower margins, and, in some cases, the threat of closing down.

For ordinary South Africans, the outcome could ripple into everything from job security to food prices. This makes the deal not just a matter of trade diplomacy but a pressing issue for households and communities already struggling with rising living costs.

Why this matters: For Joburg’s business owners, factory workers, and farmers, the US remains one of the biggest markets for South African goods, and what happens in these talks could decide whether their next year is one of growth or cutbacks.