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IOL News
31-07-2025
- Business
- IOL News
South Africa braces for economic turmoil as US export tariffs take effect
US President Donald Trump last month announced that his administration would levy a staggering 30% tariff on all South African products entering the US, with some exclusions or reduced tariffs on metals and minerals, in a bid to address long-standing trade imbalances and unfair market restrictions. Image: Brendan Smialowski/AFP August 1, 2025, marked the dawn of a new era for South Africa, albeit a troubling one, as a hefty 30% export tariff to the United States came into effect. This significant policy change has sent ripples through the nation's economy, stirring anxiety among businesses and consumers alike. With no agreement in sight to prevent this trade burden, South Africans are bracing themselves for the ramifications on both local markets and international trade relations. US President Donald Trump last month announced that his administration would levy a staggering 30% tariff on all South African products entering the US, with some exclusions or reduced tariffs on metals and minerals, in a bid to address long-standing trade imbalances and unfair market restrictions. South Africa exports billions of rands' worth of goods to the US each year, including fruit, vegetables, meat, and wine. These sectors employ thousands of workers, and the 30% tariff will render their products uncompetitive in the American market, placing immense pressure on producers and exporters. Major South African exports to the US include precious stones and metals, motor vehicles, parts and accessories; iron and steel, machinery; aluminium products, ores, organic chemicals, chemical products, nickel products, agricultural products such as citrus fruits, wine, processed foods. According to estimates, the tariffs will add roughly $3.5 billion (R63bn) to the cost of exports to the US, based on South Africa's 2023 export value. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Thys van Zyl, CEO of Everest Wealth Advisory, on Thursday said South Africa was facing severe economic consequences without any formal agreement in place with its second-largest bilateral trading partner. 'It is almost unthinkable that, on the eve of such far-reaching tariffs, we still do not have a formal agreement – or even a timeline for when one can be expected. This is not only deeply concerning – it is negligent,' Van Zyl said. Despite discussions between the relevant stakeholders, there are no confirmed exemptions, no concessions, and no sign of progress in negotiations with the US government. The government has denied claims of a trade imbalance between South Africa and the US, maintaining that the 30% reciprocal tariff was not an accurate representation of available trade data. Minister of Trade, Industry and Competition, Parks Tau, this week said they were working with other government departments on a response plan that also focuses on demand side interventions in the impacted industries. Tau said the government was awaiting substantive feedback from the US counterparts on the final status on its Framework Deal, which proposed importing 75-100 petajoules of Liquified Natural Gas for a 10-year period, simplifying of US poultry exports under the 2016 tariff rate quota, and private sector commitments to invest $3.3bn in US industries such as mining and metals recycling. However, Van Zyl said the lack of a formal agreement was sowing uncertainty for long-term business planning and investment beyond the immediate cost pressures. 'The only constant is uncertainty. Our export sectors are now left to fend for themselves – simply because the government acted too late and too vaguely,' said Van Zyl. 'Investors seek certainty – and what they're now getting is ambiguity and silence. This is the kind of uncertainty that drives capital away. We need a proactive trade policy – one driven by results, not rhetoric. The government must take responsibility for this disastrous diplomatic outcome, and immediately table recovery plans to protect the export sector and restore investor confidence.' Meanwhile, Foord Asset Management portfolio manager Farzana Bayat said a 30% tariff wall on South African exports to the US would be catastrophic and escalate trade risk. 'That would be a seismic shock. Even traditional US allies like the EU and Japan have negotiated reduced 15% tariffs - South Africa may not be so lucky,' Bayat said. She said the stakes were high as the expiry of the African Growth and Opportunity Act in 2025 was already clouding the medium-term trade outlook. Bayat said the immediate risk was acute as the South African Reserve Bank Governor Lesetja Kganyago recently warned that up to 100 000 jobs were at risk, and the automotive and citrus industries were especially exposed. Car exports to the US have already collapsed by more than 80% due to earlier tariff pressures. 'This economic stress comes at a time when South Africa is already contending with low growth, power insecurity, and shaky investor confidence,' Bayat said.'Losing preferential access to the US - our third-largest trading partner - could be devastating.' BUSINESS REPORT
The Star
30-07-2025
- Business
- The Star
Unlock your tax savings: a guide to navigating auto-assessments
Dieketseng Maleke | Published 1 week ago As the 2025 tax season gets underway, millions of South Africans have already received their auto-assessments from the South African Revenue Service (Sars). But while these automatically generated assessments may seem like a welcome convenience, financial experts are urging taxpayers to proceed with caution before simply clicking "accept." 'Auto-assessments should not be accepted blindly,' warns Thys van Zyl, CEO of Everest Wealth Advisory. 'Tax season is, in fact, a golden opportunity to reduce your tax liability and potentially even receive a refund.' Van Zyl stresses that although Sars uses third-party data to calculate auto-assessments, these calculations may not include all the deductions you're entitled to. 'The reality is that not all allowable deductions are necessarily included. Additional deductions may include extra medical expenses, charitable donations, and home office or travel allowances. If you simply accept the auto-assessment, you may get less back than you're actually entitled to," he says. According to Van Zyl, if you've already received an auto-assessment and refund but realise you've missed important deductions, all is not lost. Taxpayers can still submit a tax return manually to correct or supplement the information provided by Sars. 'It's often wise to set aside the refund until the amended return has been processed. Just as it is every taxpayer's responsibility to ensure their tax return accurately reflects their income and expenses, they must also make sure they are refunded if they've overpaid or qualify for deductions," says Van Zyl. He says, importantly, taxpayers remain legally accountable for any errors, even if those originate from Sars' side. 'That's why you should always make sure your information is complete. If you notice any mistakes or omissions, you must request an amendment before accepting the assessment. Claiming that Sars calculated it and that it must therefore be correct will unfortunately not hold up. If you don't submit the correct information, it may result in penalties and interest on overdue tax – or, in severe cases, even criminal consequences," Van Zyl says. The 2025 tax season officially opened on July 7, with the rollout of auto-assessments. Taxpayers who want or need to submit returns manually can do so from July 21 to October 20, 2025, while provisional taxpayers have until January 19, 2026. According to Sars, 5.8 million taxpayers received auto-assessments this year, up from 5 million in 2024. Sars says 99.6% of those assessments have remained unchanged by taxpayers so far, and R10.6 billion in refunds have already been paid, most within 72 hours. Still, Van Zyl encourages South Africans to take a proactive approach: 'Tax season is an opportunity to take control of your finances and make the most of legal deductions and benefits.' Van Zyl says the most powerful tools available to taxpayers are: Tax-Free Investments: You can invest up to R36,000 per year (or R500,000 over your lifetime) tax-free, with no tax on dividends, interest, or capital gains. Retirement Contributions: You can deduct contributions to retirement funds up to 27.5% of the greater of your taxable income or remuneration, capped at R350,000 annually. 'It's smart to ask yourself during tax season: How can I make my money work for me? Even small contributions to a tax-free savings account or retirement annuity can make a big difference over time, especially thanks to the power of compound growth," Van Zyl says. Sars says the auto-assessment process is part of its broader drive to become a 'smart, modern' tax authority, using artificial intelligence, machine learning, and big data to streamline compliance. So far, more than 2.1 million taxpayers have engaged Sars through its digital channels, including: Online Query System (SOQS) WhatsApp (707,000 queries) Lwazi Chat Bot eFiling and the SARS MobiApp, which saw over 10.2 million logins since July 4. Sars commissioner Edward Kieswetter praised the success of this year's auto-assessment initiative, calling it 'a game changer' in making tax compliance easier. 'Ultimately, our aim is to make the best service to be no service at all. I encourage taxpayers to use our digital channels rather than queue at our Service Centres," he says. However, Sars also cautions taxpayers to be alert to scams. They remind users that Sars will never request engagement through unofficial links and urges the public to protect their login details and consult only registered tax practitioners. Suspicious messages or phishing attempts should be reported to [email protected] . 'Make sure your details are up to date, keep all necessary documentation, and use the legal mechanisms available to reduce what you owe – or to get something back. If you plan smartly and file on time, you can not only stay compliant but benefit from the process as well," Van Zyl says. Helpful Sars resources for 2025 Filing Season: Website: Online Query System: SOQS WhatsApp: 0800 117 277 (send 'Hi') SARS AI Virtual Assistant: Available 24/7 on the website Dial: 134 7277# for mobile access 7277# for mobile access YouTube: @sarstax PERSONAL FINANCE
