Audio By Carbonatix
South Africa has no immediate plans to retaliate against the United States over tariffs announced by President Donald Trump this week and will instead seek to negotiate exemptions and quota agreements, senior government officials said on Friday.
Trump imposed a 31% tariff on U.S. imports from South Africa on Wednesday, when he announced a 10% baseline tariff on all imports and higher targeted duties on dozens of countries.
The United States is South Africa's second-largest bilateral trading partner after China.
Africa's most industrialised nation has said previously that it wants to agree a bilateral trade deal with Trump's team. That looks to be a tall order, however, after the U.S. president's repeated attacks on South Africa since his return to the White House in January.
"To say we will impose reciprocal tariffs without first understanding how the U.S. arrived at 31% ... would be counterproductive," trade minister Parks Tau told a press conference, saying South Africa's average tariff on imports was 7.6%.
Foreign affairs minister Ronald Lamola, meanwhile, said Trump's tariffs effectively nullified the benefits African countries had enjoyed under the African Growth and Opportunity Act.
The AGOA initiative, which grants qualifying African nations duty-free access to the U.S. market, is due to expire in September. And Trump's far-reaching tariffs suggest that a renewal of the trade accord enacted in 2000 is now unlikely.
The actions by the United States underscored the need for South Africa to accelerate efforts to diversify its export markets, the ministers said, mentioning markets in Asia and the Middle East as potential opportunities.
In the meantime, they said the government would seek to support industries most affected by the tariffs, including car manufacturing, agriculture, processed foods and metals.
The government will not remove benefits U.S. carmakers enjoy under its Automotive Production Development Programme, a production incentive scheme, Tau said.
South Africa's National Treasury estimates that losing its AGOA status could reduce economic growth by less than 0.1 percentage points.
The central bank has modelled several scenarios related to South Africa's access to U.S. markets, with the impacts ranging from under 0.1 percentage points to 0.7 percentage points depending on the severity of the trade barriers and how badly financial market sentiment is affected.
Trump's latest tariffs are in addition to the 25% imposed on all vehicles and car parts imported into the U.S. That is a particular threat to South Africa, which exports over $2 billion a year in vehicles and auto parts to the U.S.
Latest Stories
-
GPL 2026/27: Kotoko target first victory as Heart of Lions visit Kumasi
52 seconds -
NAIMOS launches Operation Water Shield against illegal mining in Ghana
2 minutes -
Man loses case to claw back $369,000 he spent on lavish gifts for ex-girlfriend
3 minutes -
Government plans to recruit 10,000 teachers next year to address staffing gaps
4 minutes -
‘What advice?’ – Haruna Iddrisu questions Adutwum’s offer to help
5 minutes -
2nd JoyNews-Republic Bank Habitat Fair Clinic underway at Marina Mall
6 minutes -
Government to upgrade 20 Category B schools to Category A and build 10 new schools
6 minutes -
7 dead, 21 injured in Hwideim-Acherensua highway crash
8 minutes -
Non-Interest Banking: A true Christian way of banking
22 minutes -
Cardiologist warns excessive ‘koobi’ and ‘momoni’ could increase blood pressure risk
23 minutes -
Ga Mantse calls for closer cooperation between Zongo leaders and traditional authorities
24 minutes -
Wa-Han road will be completed by end of 2027 – Mahama
25 minutes -
Gyakie features on Ajebo Hustlers’ new song ‘365 Days’
30 minutes -
Global coal demand forecast to rise by 1.2% in 2026 to a record 8.94 billion tonnes due to Middle East conflict, IEA says
31 minutes -
Big Push road projects to be completed in phases due to limited funds – Mahama
33 minutes