South Africa: SADC economies face uncertainty as Trump tariffs bite

Zawya

23-04-2025

The Southern African Development Community (SADC) is assessing the impact of United States President Donald Trump's trade tariffs, amid concerns that the region's fragile economies are heading for uncertain times.
President Trump imposed a new baseline tariff of 10 percent on imported goods from SADC member states with effect from April 5, while 'reciprocal' tariffs came into force on April 9.
The regional economies will be affected by the tariffs to varying degrees, with countries such as Lesotho hit hardest after Washington imposed a 50 percent 'reciprocal' tariff, while Madagascar was slapped with a 47 percent tariff.
Lesotho's major exports to the US, which are textiles and clothing, were not included on the list of exempted products.
The tiny mountain kingdom exported $237.3 million worth of goods to the US in 2024, while Madagascar's exports were valued at $733.2 million.
SADC countries, except for Seychelles and Zimbabwe, enjoyed duty-free access to the US market under Washington's African Growth and Opportunity Act (Agoa) until President Trump's tariffs came into effect.
'The current term of Agoa was due to expire by the end of September 2025,' SADC said in a statement as it announced plans for a high-level summit in June to discuss the impact of the new tariff regime.'In response to these developments, SADC is carrying out a detailed assessment of the impact of the global geopolitical developments on the different sectors of the region.'
After the probe, SADC ministers will meet sometime in June to discuss the findings and chart a way forward.'In addition, the SADC secretariat will be carrying out a detailed assessment of the impact of the US measures on trade with the region for review by ministers in forthcoming meetings of the Committee of Trade and the Ministerial Task Force on Regional Integration in June 2025, which will recommend to the Council of Ministers meeting in August 2025 for decision to be taken as a collective response by SADC member states,' the regional body said.'SADC reiterates its commitment to further the objectives of the SADC Treaty through continued adherence to multilateral trade rules and fair competition administered by the World Trade Organisation and remains open to engagement with stakeholders on these matters.'
Frosty relations
South Africa, the region's biggest economy, has had a frosty relationship with the Trump administration.
Trump accuses President Cyril Ramaphosa's government of mistreating South Africa's white minority. The US has also cut funding to South Africa after criticising Pretoria's foreign policy as anti-American.
South Africa's annual exports to the US average $3.6 billion and consist mainly of automobiles and agricultural products.
There are already doubts that SADC will emerge with a common position on the tariffs, given the countries' different foreign policy thrusts.
Zimbabwe, which chairs the 16-member regional grouping, was the first country to scrap tariffs on US-imported products after President Trump started imposing unilateral tariffs.
President Emmerson Mnangagwa said the gesture was meant to promote better trade relations with the US.
Zimbabwe's former Finance minister Tendai Biti argued that the move was a betrayal of regional solidarity and that President Mnangagwa should have led a collective and research-driven response to the US tariffs regime.'The response to US-imposed tariffs or any other external threat to the region cannot be unilateral, opportunistic and ill thought,' Mr Biti said.'Zimbabwe, particularly in its capacity as SADC chair, had a duty of leading a regional response anchored on values, research and pan-African interest.'The region has solidly stood with the regime in Harare for years and the same owes a duty of care to the region.'The region has serious geopolitical threats, including the war in the DRC and the threat of global war. Unilateralism is myopic, selfish and suicidal. It is a huge betrayal.'
Nqaba Matshazi, a prominent Zimbabwean newspaper columnist, said President Mnangagwa's response to the tariffs was too hasty and could have serious implications for regional trade relations.'The SADC trade protocol states that member states shall, to their best endeavour, co-ordinate their trade policies and negotiating positions in respect of relations with third countries,' Mr Matshazi said.'At this stage, you would expect that SADC would develop a common position in response to President Trump's tariffs, which would be beneficial for the whole region and not single countries.'Trade policies in one country have an effect on another country, and that is why SADC and other regional blocs came up with such protocols.'
The Trump administration immediately said the removal of tariffs by countries such as Zimbabwe was meaningless because it viewed those offers as 'zero tariff cheating' and 'misdirection'.
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