2025 Trump tariffs were announced yesterday (Wednesday 2 April 2025), in which the US administration slapped South Africa with a 30% tariff on all imports, reports BusinessTech. The increased 2025 Trump tariffs are the US’s bid to seek reciprocal trade relations globally.
The United States is South Africa’s second-largest trading partner, after China. And the 30% tariffs will likely to hurt the economy in its current state. In anticipation of the 2025 Trump tariffs, the Department of Trade, Industry and Competition (DTIC) met with US authorities to have their case heard. Specifically, regarding the African Growth and Opportunity Act (AGOA), which gives South Africa duty-free access to the US for vehicle exports.
2025 TRUMP TARIFFS
Unfortunately, DTIC officials made no in-roads and new 2025 Trump tariffs will erode into a once-preferable AGOA arrangement. Nearly two-thirds (64%) of South African exports to the US are locally manufactured cars. Last year, South Africa shipped R40-billion worth to the US. Moreover, South Africa’s car industry accounts for more than 5% of national GDP and employs over 115 000 skilled people.
Nevertheless, South Africa falls into the higher 30% tariff rate because we are ‘one of the worst offenders’, says the US President. 2025 Trump tariffs are supposed to readdress long-talked-about non-reciprocal tariff structures, and to ‘put America first again.’ Trump says that countries around the world are exploiting the US. They are ‘cheating the system’ by running massive surpluses and ‘hidden’ tariffs through VAT and other measures.
WHO ARE THE ‘WORST OFFENDERS?’
During the briefing on 2025 Trump tariffs, the US President highlighted China, the EU, India, Japan, and South Korea (among others) for the highest tariff hikes. Trump claims China is imposing tariffs of 67% on the US. In turn, the US will charge a ‘discounted’ rate of only 34% back to China. Likewise, for South Africa, Trump claims that tariffs on the US amount to 60%. In turn, it will implement a ‘discounted’ 30% tariff on us.
“We send them billions of Dollars, but we had to cut their funding because bad things are happening there,” said Trump. The only countries that would be exempted from the tariffs, would have to move production to the US. Worse still, these tariffs took effect from midnight last night in America. Leaving industry leaders scratching their heads on how to proceed.
WHAT HAPPENS NEXT?
However, there is a significant trade imbalance which President Trump clearly has not accounted for. US imports of cars and car parts from South Africa is estimated at approximately R40 billion. While US exports going the other way to South Africa were only in the region of R20 billion. As a result, the NAAMSA Automotive Business Council says South Africa has the facilities to retaliate in kind against the US, reports TopAuto.
Collectively, NAAMSA represents South Africa’s local vehicle manufacturers. Namely, BMW, Ford, Isuzu, Mercedes-Benz, Nissan and Volkswagen. As well as other automotive industry stakeholders. “The US should carefully look at the fact that South Africa has the mineral resources they need in order to produce vehicles they would otherwise import from us,” commented NAAMSA CEO Mikel Mabasa. “So, if they hurt us significantly with 2025 Trump tariffs, we can lobby to reciprocate in kind with minerals purchased by the US being subject to an equal or higher tariff,” Mabasa concluded.
HOW WILL THE SOUTH AFRICAN ECONOMY FARE?
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