Neelam Rahim | neelam@radioislam.co.za

3-minute read
06 April 2025 | 13:59 CAT

South African agricultural exports face uncertainty as US imposes steep 31% tariffs, raising concerns for local industries and economic stability.

South Africa’s export-reliant industries are bracing for a tough economic blow following the United States administration’s decision to implement a 31% tariff hike on South African exports. The move has triggered growing concern across vital sectors, particularly agriculture and the automotive industry, raising questions about the country’s preparedness to weather the storm.

Speaking to Radio Islam, Chrispin Phiri, spokesperson for the Minister of International Relations and Cooperation, emphasised that while the tariffs come as a significant challenge, it is essential to view the matter through a global lens rather than a South African one.

“I think when we look at the US administration, we must resist the temptation of looking at it only through the South African lens,” Phiri explained. “A number of countries were imposed, the tariffs were imposed upon, even islands. To say South Africa has been ambushed may be only a South African lens.”

Phiri further highlighted that these tariffs reflect a global trade challenge that many nations now face due to unilateral decisions by the US government. “Everyone seems to have to find a way to adjust to what we believe is contrary to the World Trade Organization’s rules,” he stated.

The Department of International Relations and Cooperation has assured the public that the government is not sitting idle. Strategic adaptation measures are being explored to cushion the impact on the economy, with a focus on compliance with global trade frameworks and diplomatic engagements.

However, economists warn that this may not be enough to shield vulnerable sectors from job losses and increased production costs. With agriculture and automotive exports among the hardest hit, local businesses are likely to face rising operational pressures.

Phiri concluded by reaffirming South Africa’s commitment to multilateralism and fair trade practices, adding that efforts to engage the World Trade Organisation will form a crucial part of the government’s response.

As the tariffs come into effect, industries and citizens alike are watching closely to see whether government intervention will prove sufficient — or whether the ripple effects will be felt for years to come.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Chrispin Phiri here.