South Africa will not retaliate immediately against steep new U.S. tariffs but will instead pursue negotiations, senior officials announced Friday.
This week, President Donald Trump imposed a 31% tariff on imports from South Africa, part of a sweeping trade move targeting dozens of nations.
The decision forms part of a broader 10% baseline tariff on all U.S. imports, marking a dramatic shift in American trade policy.
South Africa, the continent’s most industrialised economy, now faces the threat of losing critical U.S. market access.
Trade Minister Parks Tau said retaliating without clarity on the tariff calculation “would be counterproductive,” citing South Africa’s average tariff of 7.6%.
Foreign Affairs Minister Ronald Lamola added that the new tariffs effectively nullify benefits under the African Growth and Opportunity Act (AGOA).
The AGOA pact, which grants duty-free access to the U.S. market, is set to expire in September, and renewal appears unlikely under Trump.
Officials warned the move highlights the urgency for South Africa to diversify exports, looking increasingly to Asia and the Middle East.
Washington remains South Africa’s second-largest trading partner, with over $2 billion in annual vehicle and auto part exports at stake.
Trump’s tariffs are layered atop a previous 25% levy on auto imports, threatening a cornerstone of South Africa’s manufacturing sector.
Despite the trade blow, Pretoria will not revoke incentives U.S. carmakers receive under its Automotive Production Development Programme.
The National Treasury estimates losing AGOA would shave less than 0.1 percentage points off economic growth.
South Africa’s central bank is preparing for multiple scenarios, with economic impacts potentially reaching 0.7 percentage points in a worst-case outlook.
For now, the government says its focus is on shielding vulnerable industries and securing diplomatic solutions to avert deeper economic damage.