The United States announced its much-anticipated sweeping new taxes for foreign-made goods being sold to US consumers this Tuesday. The United States announced that starting 5 April, a universal 10% tariff will hit all US imports, and from the 9th of April, it will become even more tense, as around 60 countries are singled out for more extreme measures.
South Africa is amongst the famous few, as 30% of our exports will be levied, these include 34% on China, 20% on the European Union, 46% on Vietnam and 32% on Taiwan.
President Trump has justified his decision stating that these tariffs will boost local manufacturing, and protect American Jobs – even though economists warn that the opposite will occur.
Analysts suggest that the tariffs, which consist of a standard, universal 10 percent duty on all imports from the US, along with extra tariffs on countries deemed “worst offenders” like Nigeria and South Africa, are likely to nullify a long-standing open trade agreement. This agreement has allowed African manufacturers to export goods to the US without duties and has been credited with creating tens of thousands of jobs.
Trump emphasized longstanding US trade deficits, where the country imports more than it export, arguing the US has been “looted, pillaged, raped and plundered by nations near and far, both friend and foe alike.”
The US administration stated that these new levies were calculated based on the size of each country’s trade surplus with the US – the bigger the gap, the higher the tariff.
The South African Government has released an official statement with concern about the newly imposed tariffs.
The South African Presidency expressed concern in a statement issued this morning and is still trying to talk up its commitment to “a mutually beneficial trade relationship with the United States.”
“Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity,” said the South African Government in an official statement.
The South African Government further noted that its main goal is to remain committed to negotiate a new bilateral trade agreement with the US, as an essential step to secure long-term trade certainty.
It is crucial to recognize that the United States continues to be South Africa’s second-largest export destination, representing nearly 10% of the country’s total exports.
In 2024, the total trade in goods between the U.S. and South Africa amounted to $20.5 billion. U.S. exports to South Africa in 2024 were valued at $5.8 billion, marking an 18.3% decrease ($1.3 billion) from 2023.
Conversely, U.S. imports from South Africa rose to $14.7 billion, a 4.9% increase ($679.4 million) from the previous year. Lesotho, a neighboring nation to South Africa, was severely impacted by the tariff increase.
This small Southern African country, which former President Trump recently remarked “no one has heard of,” faced the highest tariff rates at 50%. Lesotho continues to bear the world’s second-highest HIV burden and is still grappling with the aftermath of Trump’s extensive aid cuts that have severely affected HIV response efforts in the region. The pressing question is how these countries will manage the tariff hikes and the potential further harm to South Africa’s already fragile economy.
Cherrylee Samson, Vice President of Hibarri, points out that there are multiple solutions to the tariff hike issue. Events like the International Commodity Summit 2025 are crucial for networking and setting the stage for new business partnerships and international trade agreements.
Samson suggests that diversifying South Africa’s supply chains, negotiating with suppliers, and exploring duty drawback programs are strategic approaches to consider.
“There are numerous solutions, and by possibly relocating production to regions with lower tariffs or utilizing free trade agreements, South Africa can address its tariff challenges,” Samson said.
She also mentioned that the International Commodity Summit (ICS2025) will feature various panels aimed at tackling global trade challenges.
“Two panels will specifically address the issues South Africa is currently facing. The supply chain geopolitics discussion will analyze the increasingly complex and volatile landscape affecting global trade, while the world trade shift panel will explore the forces reshaping global commerce,” Samson explained.
These discussions serve as platforms to examine changing trade alliances, trade conflicts, and political instability from a private sector perspective, and how these geopolitical factors influence trade, the maritime industry, and shipping routes.
For further information on The International Commodity Summit 2025, including registration details, sponsorship opportunities, and the full agenda, please visit [https://internationalcommoditysummit.com/].
