US tariffs could ‘open doors for local brands'
Premium 07 August 2025
SA retail franchises may be unexpected beneficiaries of the latest US trade tariffs as American brands operating in the country face rising costs and growing operational challenges.
The 30% tariffs, which follow failed negotiations between the US and SA trade officials, are expected to affect the agriculture and automotive sectors most severely. However, Karen Keylock, Nedbank commercial banking national manager for retail services, knock-on effects are also expected to ripple through the retail sector, particularly in franchising where many brands rely heavily on imported products, foreign trademarks and dollar-denominated royalty payments...
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
19 hours ago
- IOL News
Economists warn of job losses as US tariffs threaten South African trade
The South African sugar industry is facing the threat of collapsing and job losses as a result of US President Donald Trump imposing 30% tariffs on the country's exports. Image: Karen Sandison / Independent Newspapers In the wake of the recent 30% tariff hike imposed by the United States, South Africa's sugar and automotive industries are bracing for significant upheaval. Economists warn that these tariffs could spell disaster for local businesses, jeopardising exports and leading to alarming job losses. An economist has warned that losing the market will collapse the industry after President Donald Trump's 30% tariff hike imposed on goods exported to the country's second biggest trade partner. Economist Miyelani Mkhabela shared these sentiments as some local exporters already expressed concern about their future. 'People have a reason to panic because the tariffs will make it difficult for South African products to appeal to the American market,' said Mkhabela. He said small industries are facing the danger of collapsing because although the normal trade deal between South Africa and the US might be restored after the end of Trump's presidency, 'four years is a lot for a company.' 'When the market is closed (through exorbitant tariffs), it means a lot for small businesses that are sending products to the American market would suffer, as their clients would say your products are 30% higher. 'That would collapse the South African manufacturing system because we depend on the US as our second trade partner,' he said. He said South Africa cannot easily find a country that could replace the American market, which 'is bigger than what we are sending to the whole of Africa'. However, he said the African economy would recover after four years as it recovered from the global financial crisis and 'is still recovering from the global health (Covid-19 pandemic). But after Trump, many emerging companies will no longer exist because they will fail to repay bank loans. SA Farmers Development Association (SAFDA) Executive Chairman Dr Siyabonga Madlala, who is involved in sugar manufacturing, is concerned that while businesses have no power over politically influenced tariffs, they are the ones bearing the brunt. Madlala anticipated a loss of millions of rand, a situation that would result in alarming job losses. He said the South African Sugar Association (SASA)'s lots of sugar meant for the US might go to waste. 'America, through AGOA (the African Growth and Opportunity Act), has given us a lucrative market for about 24,000 tons of sugar exports, so with the imposition of tariffs, our sugar won't be attractive to our US consumers as it is now becoming expensive. 'It forces US consumers to look for alternatives rather than buying from us because our sugar becomes 30% more expensive,' said Madlala. South African competitors in supplying the US with sugar are Mexico, Brazil, Australia, and several Central American and Caribbean nations. He estimated that, through the tariffs, SASA will lose R168 million from its annual revenue. According to Madlala, the US market, which found South African sugar affordable under the AGOA agreement, may look for alternative countries to buy from. 'The reason is that lots of other countries are subsidised, therefore they can afford to still sell sugar than us, as we are not subsidised but working on our own,' said Madlala. He said reducing production would cause job losses and the shutdown of sugar mills. 'Once you try to lower the production, it means some farms will shut down or diversify. By that, it means that sugar mills will lose sugar cane supply, which is the lifeblood of the sugar mill,' he said. He said the tariffs came at the wrong time when the government's master plan was succeeding in reviving some major sugar mills, including Tongaat Hulett, which in the process was coming out of business rescue. 'While we are appreciating the master plan's initiative, we are now bombarded with the tariffs,' said Madlala. Influential organisations such as FW De Klerk Foundation recently called for the country to expand its trade partners rather than relying on the US. Agriculture Minister John Steenhuisen said the government was also reaching out to other countries. However, Madlala said finding an alternative market was not easy to do overnight. National Association of Automotive Component and Allied Manufacturers (NAACAM) CEO Renai Moothilal told the media that the automotive industry was already feeling the effects, as some companies have started to lose US deals. 'We are already seeing new contracts, especially for the US, being cancelled or not pursued, putting one of the country's most critical manufacturing sectors at risk,' Moothilal said. Build One SA (BOSA) called on Ramaphosa to engage directly with the US Congress members, who will decide on the fate of AGOA, and tell them that over 500,000 US jobs are linked to trade with South Africa. Another economist, Khulekani Mathe, commended Ramaphosa for continuing to negotiate with Trump, as he cannot immediately find an alternative market. He said it was not guaranteed that South Africa/US trade would recover after Trump's departure. 'It is dependent on whether we are to negotiate anytime between now and four for more favourable terms. The economic recovery would depend on whether the country can find an alternative market to send the volume of products that are sent to the US, something that can not materialise in the short term. Professor Bonke Dumisa said Trump was miscalculating to think tariffs would benefit his economy because 'Economic History shows us that no one wins the tariff wars'. 'Purportedly, it is said that the USA wants to open space for its businesses to recapture the market space they lost as they focused on moving abroad to produce more competitively priced products. Unfortunately, USA businesses priced themselves out of the markets. 'The South African businesses affected by these Tariffs must look for alternative markets. There is very little that the government can do to help these businesses,' said Dumisa. [email protected]
IOL News
a day ago
- IOL News
British, South African companies forge new partnership with WP Deaf Cricket Team
The Western Province Deaf Cricket Team proudly show off their new kit from their sponsors. In a groundbreaking initiative that champions inclusivity and empowerment, Outsource-SA, a premier talent and strategic outsourcing firm, has joined forces with TCC Cricket Bats UK to sponsor the Western Province Deaf Cricket Team. This collaboration marks a pivotal moment for the sport in South Africa, aiming to enhance the sporting landscape for deaf athletes across the country. Percival Topley, vice chairman of Deaf Cricket South Africa, conveyed heartfelt appreciation for the sponsorship during a recent press conference. 'We are incredibly thankful for Outsource-SA and TCC Cricket Bats UK stepping up to support our deaf cricketers. This partnership will make a real difference, providing our athletes with the resources they need to excel.' His statement emphasises the need for support systems that help deaf athletes overcome barriers in competitive sports. Shaun Smith, CEO of Outsource-SA, along with Warren Jackson, owner of TCC Cricket Bats UK, expressed profound enthusiasm for the initiative. Smith articulated their commitment: 'We are immensely proud to be involved in such a wonderful partnership.' Jackson added: 'It's truly gratifying to know we're making a tangible impact on people's lives through this collaboration,' highlighting the positive ripple effects that such partnerships can have on communities. Beyond supporting the Western Province Deaf Cricket Team, Outsource-SA is deeply invested in broader social responsibility goals. The company actively champions initiatives aimed at creating a more inclusive society, focusing on diversity, empowerment, and the eradication of unemployment. Their multifaceted approach spans various sectors, addressing the immediate needs of a rapidly expanding South African population while fostering long-term sustainability. One of the key pillars of Outsource-SA's mission includes the programme 'Connecting Companies with Top Women In Tech,' which seeks to bridge the gender gap in the technology sector. By connecting forward-thinking businesses with skilled female IT professionals, Outsource-SA is helping to build a more equitable workforce environment. Furthermore, their commitment to 'Youth Empowerment' enables young South Africans to seize opportunities that provoke positive societal change, thus enhancing the nation's future. Additionally, Outsource-SA advocates for the 'Importance of Diversity, Equity, Inclusion, and Belonging,' fostering work environments where everyone feels appreciated and valued—a critical aspect of cultivating a successful and innovative workforce. As Outsource-SA embarks on this partnership with TCC Cricket Bats UK, it sets a precedent for future collaborations within sport that support and empower historically underrepresented communities. Through these comprehensive efforts, the company continues to make a lasting positive impact, championing a more inclusive and equitable future for all South Africans.
The Citizen
a day ago
- The Citizen
2025 Corvette Stingray arrives in SA
Fully homologated for South Africa and right-hand drive, the Corvette Stingray has touched down on local shores. Here's what you can expect, including pricing, from this mid-engined American supercar. The Corvette Stingray has arrived in South Africa – fully homologated for our market; factory-built, right-hand-drive format; and available in both coupé and convertible body styles. Noteworthy, the Stingray ships with the United States brand's Z51 performance package as standard – the latter adding to the American supercar's on-road and -track capabilities, and lifting the 6.2l naturally aspirated V8's peak power output to a healthy 369kW. Mounted midships, the LT2 engine channels power to the rear axle via an eight-speed dual-clutch transmission. According to the company, the Stingray completes the 0-100km/h sprint in just 3.5 seconds. 2025 Corvette Stingray price in SA Available through CVH Auto Group, which is headquartered in Bryanston, Gauteng, the Corvette Stingray is priced from R3.7m in South Africa. A service plan and warranty are included as standard. In addition to the Stingray, the Z06 is also available in South Africa. The latter, more focused model is equipped with the firm's (LT6) 5.5l atmospheric V8, which produces 500kW for a claimed 0-100km/h sprint time of under three seconds. Click here to browse thousands of new and used vehicles here with CARmag! The post 2025 Corvette Stingray Arrives in SA: Price & Specs appeared first on CAR Magazine. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal.
