South Africa to support exporters facing new 30% U.S. tariffs
South Africa prepares relief package for firms hit by U.S. tariffs
On Thursday, Donald Trump signed an executive order imposing new tariffs on dozens of countries, effective August 7. While some nations saw adjusted tariff rates, South Africa’s rate remained at 30%.
That same day, South Africa’s Department of Trade, Industry, and Competition launched an export support service as part of "urgent measures" to assist local exporters affected by the tariffs.
Although President Cyril Ramaphosa said the ministry is “in constant contact” with the U.S. regarding a framework agreement to review the tariff rates, the government has already begun preparing a relief package for affected exporters.
“The package includes a range of support measures for companies, producers, and workers impacted by U.S. tariffs on South African exports. Details will be announced in due course,” said Ramaphosa.
He added that the government would strengthen its economic diversification strategy to improve resilience. It is working with export councils, industry associations, and leading U.S. exporters to access alternative markets.
Not all South African exports will be subject to the 30% tariff. Exceptions include copper, pharmaceuticals, semiconductors, lumber, certain critical minerals, stainless steel scrap, and energy products.
Government faces criticism
Meanwhile, the Congress of South African Trade Unions (COSATU) on Friday said it is “deeply concerned” about the impact of the 30% tariff on all South African goods except raw minerals.
“We fear the devastating consequences this will have for citrus workers from the Western Cape to Limpopo, and automotive workers from the Eastern Cape to Gauteng. No company can compete with a 30% tariff. Many may shut down,” said COSATU.
The union argued that Trump’s tariffs unfairly made South Africa a global outsider, while “regimes with questionable rule of law, human rights violations, and even genocides” received more favorable trade terms.
Parliamentarians Toby Chance and Ryan Smith accused the government of delivering a poor negotiating outcome, calling it “a result of pure negligence, failed diplomacy, and incompetence.”
As we wrote, South Africa faces 30% tariff as U.S. presses trade strategy
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