TRUMP FOLLOWS THROUGH ON HIS TARIFF THREAT
As of 1 August 2025, Americans will be paying a 30% higher rate of import duty on goods of South African origin. One of the reasons cited for the increase is that, according to Trump, the relationship between South Africa and the United States of America (“USA”) is far from reciprocal, with South Africa reaping the higher benefit. This was communicated on 7 July 2025 in a letter to President Ramaphosa.
In his letter, Trump cautions Ramaphosa, saying that “If for any reason you decide to raise your Tariffs then, whatever the number you choose to raise them by, will be added onto the 30% that we charge.”
Trump gave Ramaphosa an ‘out’ by stating that if South Africa were to eliminate its tariff and non-tariff policies and trade barriers currently in place, the USA may consider adjusting the 30% tariff. An example of one such trade barrier is the anti-dumping duty currently in place on the importation of chicken into South Africa. Entities importing whole chickens and certain specified chicken pieces from the USA are presently paying an import duty of 62% per kg as well as a 940c/kg anti-dumping duty. However, a rebate item has been created allowing for a rebate of the full anti-dumping duty, and this rebate is subject to a basic annual quota of 71 963 tonnes.
South Africa has also placed an anti-dumping duty of 40% on disodium carbonate for which there is no rebate item.
There is also a 46.04% safeguard duty on screws, bolts, and nuts of iron or steel imported from, inter alia, the USA, which is rebatable if the importer can show that the product is not manufactured locally.
According to the trade statistics reported on the SARS website, the USA is ranked among the top 5 countries to which South Africa exports, with the USA constituting 6.3% of our South African export market, including precious stones and metals, vehicles, machinery, equipment, and fruit. The USA is also ranked in the top 5 of countries that South Africa imports from, with 7.6% of South Africa’s imported products coming from the USA.
We will have to wait to see what impact the tariff will have on our export market, and whether South Africa responds to the tariff increases.