{"id":96770,"date":"2025-04-04T16:27:33","date_gmt":"2025-04-04T14:27:33","guid":{"rendered":"https:\/\/radioislam.org.za\/a\/?p=96770"},"modified":"2025-04-04T16:28:28","modified_gmt":"2025-04-04T14:28:28","slug":"trumps-tariff-hike-spells-trouble-for-sa-exports-and-regional-stability","status":"publish","type":"post","link":"https:\/\/radioislam.org.za\/a\/trumps-tariff-hike-spells-trouble-for-sa-exports-and-regional-stability\/","title":{"rendered":"Trump\u2019s Tariff Hike Spells Trouble for SA Exports and Regional Stability"},"content":{"rendered":"

Neelam Rahim | neelam@radioislam.co.za<\/a> <\/em><\/p>\n

3-minute read
\n04 April 2025 | 15:30 CAT<\/p>\n

\"\"

The local automotive industry now faces uncertainty following the US\u2019s sudden 31% tariff hike. (File Photo – Lee Rondganger\/IOL)<\/p><\/div>\n

South Africa\u2019s key export sectors face an uncertain future after US President Donald Trump announced sweeping reciprocal tariffs on up to 20 African countries\u2014including South Africa. The new regime includes a 31% tariff hike on certain South African goods, particularly impacting agricultural exports and the automotive industry.<\/p>\n

Economist and WITS Senior Lecturer, Dr. Lumkile Mondi, says the implications are far-reaching. \u201cMost of our goods going to the US will become more expensive for American consumers\u2026 and will favour a subsidised good in the domestic market,\u201d he explains in an interview with Radio Islam International<\/a>. In practical terms, this will reduce demand for South African exports and may result in significant economic losses.<\/p>\n

Of particular concern is the automotive sector, which currently sees around 30% of its exports headed to the US. \u201cWe may lose a substantial part of that 30%,\u201d warns Dr. Mondi, emphasising the risk this poses to employment and growth in South Africa.<\/p>\n

Agricultural goods, too, are at risk. While tariffs may shield American producers, they could also backfire. \u201cThis could be a double-edged sword,\u201d says Dr. Mondi, noting that the rising cost of essentials\u2014already a sore point for low-income Americans\u2014may worsen.<\/p>\n

There\u2019s also concern about broader regional implications. \u201cLesotho, Kenya, and Tanzania\u2014countries that depend on the US for aid and trade\u2014are heavily impacted,\u201d Dr. Mondi adds. With AGOA (African Growth and Opportunity Act) now effectively sidelined, many fear its benefits \u201cjust sit as a piece of paper.\u201d<\/p>\n

South Africa\u2019s Trade Minister, Ebrahim Patel, has hinted at seeking bilateral negotiations to exclude certain goods from the tariffs. But until then, volatility looms large.<\/p>\n

\u201cThis may be an opportunity for Africa,\u201d concludes Dr. Mondi, referencing the AU\u2019s 2063 development vision. \u201cWe must focus inward, increase intra-African trade, and build the pan-African economy we envision.\u201d<\/p>\n

Yet, as Dr. Mondi warns, the immediate future may bring \u201cbloodbaths\u2014job losses, high costs of living, and hardship.\u201d As global protectionism rises, Africa must choose resilience over dependence.<\/p>\n

Listen<\/strong> to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Dr Lumkile Mondi here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Neelam Rahim | neelam@radioislam.co.za 3-minute read 04 April 2025 | 15:30 CAT South Africa\u2019s key export sectors face an uncertain future after US President Donald Trump announced sweeping reciprocal tariffs on up to 20 African countries\u2014including South Africa. The new regime includes a 31% tariff hike on certain South African goods, particularly impacting agricultural exports […]<\/p>\n","protected":false},"author":29,"featured_media":96771,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[28,4995,4997],"tags":[],"class_list":["post-96770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-south-africa","category-world"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/radioislam.org.za\/a\/wp-content\/uploads\/2025\/04\/images.jpg?fit=299%2C168&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/pc0QIf-paO","jetpack_likes_enabled":true,"publishpress_future_action":{"enabled":false,"date":"2026-04-10 22:46:21","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts\/96770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/comments?post=96770"}],"version-history":[{"count":0,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts\/96770\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/media\/96771"}],"wp:attachment":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/media?parent=96770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/categories?post=96770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/tags?post=96770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}