US tariffs jolt South African exports; spark calls for supply chain transformation
The US' decision to impose a sweeping 30% tariff on all South African imports from August has sparked sharp concern from economists, supply chain experts and government alike, with warnings that the move could significantly impact the country's growth outlook and force a strategic rethink of export and manufacturing priorities.
President Cyril Ramaphosa acknowledged this issue when responding to US President Donald Trump's letter imposing the tariffs, urging South African companies and negotiators to accelerate diversification efforts and build greater economic resilience.
While diplomatic negotiations continue, local and international experts warn that the consequences for South African exporters could be immediate and profound.
Trump has since, again, extended the deadline although countries that have received the letters, such as South Africa, do not have an additional grace period. While
Aiste Bijuna, Consultant for Economies and Consumers at Euromonitor International, says the tariffs will deliver 'significant economic and industrial implications'.
'With exports accounting for 27.8% of GDP in 2024, South Africa's economy remains heavily reliant on external demand,' she says. While trade is geographically diversified, the US still accounts for 7.7% of outbound trade, making this a meaningful headwind," Bijuna says.
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