South Africa unveils strategy to counter US tariffs and strengthen economic resilience
South Africa has unveiled a comprehensive strategy to mitigate the economic impact of new US tariffs, set to take effect on April 9, 2025.
The plan, outlined by Minister of International Relations and Cooperation Ronald Lamola alongside Trade, Industry, and Competition Minister Parks Tau, focuses on three main pillars: export diversification, value-added production, and strengthening regional trade partnerships.
With a 30% tariff increase on most exports to the US due to President Donald Trump’s global reciprocal tariff policy, South Africa aims to safeguard its industrial base and foster inclusive growth amid challenging global trade conditions.
The strategy includes expanding export destinations beyond the US, which currently accounts for 7.45% of South Africa’s total exports.
The government is targeting markets across Africa, Asia, Europe, the Middle East, and the Americas, with a particular emphasis on leveraging the African Continental Free Trade Area (AfCFTA) to enhance intra-African trade.
Moreover, South Africa plans to invest in high-value manufacturing and modern infrastructure to reduce reliance on sectors vulnerable to tariffs, such as automotive, agriculture, and metals.
Lamola also underscored the importance of negotiating a new bilateral trade agreement with the US to replace the benefits previously provided by the African Growth and Opportunity Act (AGOA), which these tariffs now undermine.
This proactive strategy reflects South Africa’s efforts to build economic resilience in the face of a potential trade rift with the US and rising global protectionism.
