South Africa has ruled out immediate retaliation against new U.S. tariffs imposed by President Donald Trump, instead opting to negotiate exemptions and quota agreements, government officials said Friday.
Trump’s decision to slap a 31% tariff on South African imports—part of a broader protectionist trade policy—has raised concerns about the future of economic ties. The U.S. is South Africa’s second-largest trading partner after China.
“We won’t impose reciprocal tariffs without fully understanding the rationale behind the U.S. decision,” Trade Minister Parks Tau said, noting South Africa’s average import tariff stands at 7.6%.
Foreign Affairs Minister Ronald Lamola said the tariffs effectively nullify the benefits South Africa and other African nations had under the African Growth and Opportunity Act (AGOA), which allows duty-free access to the U.S. market. With AGOA set to expire in September, Trump’s tariffs cast further doubt on its renewal.
South Africa is now looking to diversify its export markets, with Asia and the Middle East seen as key alternatives. The government also plans to support industries most impacted by the tariffs, including automotive manufacturing, agriculture, and metals.
Despite the setback, South Africa will maintain benefits for U.S. carmakers under its Automotive Production Development Programme, which incentivizes local production.
Economic forecasts suggest the loss of AGOA could shave less than 0.1 percentage points off GDP growth, though the central bank warns of more severe scenarios if trade relations deteriorate further.
Trump’s latest tariffs, which include a 25% duty on vehicles and auto parts, threaten South Africa’s $2 billion auto exports to the U.S., further escalating trade tensions.