Neelam Rahim | neelam@radioislam.co.za

3-minute read
05 August 2025 | 19:00 CAT

📸 Handshake or Hardball? | SA’s Ramaphosa and the US’s Trump face off as tariffs become an economic reality for South African exports.

A seismic blow to South Africa’s economy has landed with the activation of a 30% tariff on exports to the United States. The tariff, which officially took effect on 1 August, has sparked serious concerns about job losses, trade imbalances, and the country’s slow diplomatic response.

The Department of Trade, Industry and Competition (DTIC) has scrambled into action, but experts say South Africa was caught off guard. “The South African government should have moved more quickly and assertively,” said Brooks Spector, former U.S. diplomat and associate editor at the Daily Maverick. “They didn’t get a handle on this until very, very late in the game.”

The tariffs come amid a backdrop of increasingly strained diplomatic relations. Spector notes that while former ambassador Ebrahim Rasool’s recall left a vacuum in Washington, the government has “put all their eggs in one basket” by appointing a special envoy, Mr. Mcebisi Jonas, who has yet to make a meaningful impact.

The consequences are already tangible. South Africa’s automotive, citrus, and wine industries all key export earners face devastating setbacks. “If they are subject to a 30% duty, they’re going to be priced out of the market,” warned Spector. In the automotive sector alone, thousands of skilled jobs may be on the line.

Wine exporters are also bracing for impact. “I talked to a wine merchant, exporters were already giving up on the idea of sending their stock to the U.S.,” Spector revealed. With markets drying up, foreign exchange losses loom, and ripple effects are expected to hit subcontractors and local businesses alike.

Government plans to launch a support line for affected sectors may not be enough. Spector cautions that the real economic fallout “will roll forward gently but firmly onward.”

Calls to diversify trade partners through BRICS or the African Continental Free Trade Area have resurfaced but Spector is sceptical. “You don’t develop an alternative market with a finger snap, it takes years to build trust and brand recognition.”

As geopolitics increasingly entangle trade, South Africa finds itself navigating a complex storm of diplomacy, economics, and identity on the global stage.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Brooks Spector.