USA imposes 30% tariffs on SA imports: Effective 1 August 2025

USA IMPOSES 30% TARIFFS ON SA IMPORTS

EFFECTIVE 1 AUGUST 2025

by Gerhard Papenfus

The United States of America has introduced sweeping tariffs on South African imports.

With the exception of cars (25%), steel and aluminium (50%), platinum group metals (platinum, palladium, rhodium, ruthenium, iridium, osmium), gold, chrome and coal (0%), all imports will attract a 30% tariff. This includes agricultural products, which will severely impact certain farmers.

The tariffs imposed on fruit specifically, seem to be counterintuitive as our fruit production season is not in sync with that of the United States. Therefore, fruit in the USA is not ripe at the time when we export to the United States, and consequently, we do not compete with the American farmers on these products.

In the agricultural sector, we do compete against Chile and Peru. If lower tariffs are implemented for Chile and Peru, it will provide them with a massive competitive advantage since importing from South Africa would be much more expensive.

What is the purpose of these duties? The United States indicates that it is to reduce the trade deficit that it has with South Africa and is based on duties currently applicable on imports from the United States. South Africa disputes this, stating that the duty calculation is based on incorrect data.

Our assumption is that the United States is utilising duties as a negotiating mechanism and that the issues up for negotiation are not only in the area of trade but may well include broader political issues.

In negotiations with the United States, South Africa’s relationship with adversaries of the United States (China, Russia and Iran) may come to the fore. The case instituted by South Africa against Israel will remain a contentious issue. The race-based ‘transformation’ agenda of the ANC also stands in the way of the normalisation of trade with the United States. The ANC will not concede on any of these issues, making it highly unlikely that an alternative trade deal will be concluded.

There is also the possibility of a further 10% duty on all countries aligning themselves with BRICS.

Gerhard Papenfus is the Chief Executive of the National Employers' Association of South Africa (NEASA).

Click here to watch a discussion between Gerhard Papenfus (NEASA), Dr Theo de Jager (SAAI) and Dawie Roodt (Efficient Group) on the impact of these tariffs.