In a recent update concerning the country’s mitigation measures, a senior government official has raised alarms about the potential loss of approximately 30,000 jobs if the response to rising tariffs is mismanaged.
Simphiwe Hamilton, the director-general of the Department of Trade, Industry and Competition, emphasized that this estimate stems from ongoing consultations across various economic sectors, including automotive and agriculture.
South Africa is already battling persistently high unemployment rates, with the official unemployment rate soaring to 32.9% in the first quarter of 2025, as reported by StatsSA. The alarming youth unemployment rate increased from 44.6% in the fourth quarter of 2024 to 46.1% in the first quarter of 2025.
In light of these developments, President Cyril Ramaphosa addressed the nation in his weekly online letter, underscoring the importance of adapting to the tariffs swiftly. He warned that these tariffs could significantly affect the economy and the industries that rely heavily on exports to the United States.
“As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations,” Ramaphosa stated, reassuring that all communication channels remain open for discussions with the U.S. government.
The president stressed, “Our foremost priority is protecting our export industries. We will continue to engage the U.S. in an attempt to preserve market access for our products.”
Tensions between South Africa and the U.S. have surfaced, particularly regarding President Donald Trump’s criticism of the country’s Black-led government in relation to a new land law viewed as discriminatory against white citizens.
Negations between the two nations have proven complex and unprecedented. South African ministers have dismissed claims that the absence of an ambassador in the U.S. has affected the negotiations. Ebrahim Rasool, South Africa’s ambassador to Washington, was expelled in mid-March following accusations by the Trump administration that he was a “race-baiting politician” who harbors a dislike for the president.
International Relations Minister Ronald Lamola noted that even nations with ambassadors in the U.S. and close allies of Washington have suffered from the imposed tariffs. However, he indicated that the process to appoint Rasool’s replacement is “at an advanced stage.”
The United States accounts for 7.5% of South Africa’s total global exports, with certain sectors, which make up 35% of these exports, remaining exempt from the tariffs. These exempt sectors include copper, pharmaceuticals, semiconductors, lumber products, specific critical minerals, stainless steel scrap, and energy products.
In response to these challenges, the government is actively seeking to diversify South Africa’s export markets, with a focus on strengthening intra-African trade. Countries across Asia and the Middle East, such as the United Arab Emirates, Qatar, and Saudi Arabia, are being explored as potential high-growth markets. The government also highlighted progress in opening new markets like China and Thailand, securing crucial protocols for products, including citrus fruits.
To assist manufacturers and exporters in finding alternative markets, the government has established an Export Support Desk.
While businesses welcomed this initiative, Business Leadership South Africa, an independent association that represents some of the country’s largest businesses, called for the establishment of a trade crisis committee. This proposed committee would include business leaders and government officials from the finance ministry to take swift action in response to the tariff crisis.
BLSA stated, “U.S. tariffs pose a severe threat to South Africa’s manufacturing and farming sectors. While businesses can eventually adapt, urgent temporary support is essential.”
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