The South African government is preparing a relief package to cushion companies most exposed to new US tariffs after Washington imposed a 30 percent levy on imports from the country, the highest in sub-Saharan Africa.
President Cyril Ramaphosa said the measures will assist companies, producers, and workers directly affected by the duties.
The announcement follows US President Donald Trump’s decision on Thursday to raise tariffs as part of his revised global trade strategy.
“We’re going to go all out to support our companies to seek out other markets. Our objective is to save jobs,” Ramaphosa said in a statement issued in Pretoria.
Economic Impact
The 30 percent tariff is expected to hit South Africa’s key export industries, including automotive and agriculture.
Central bank Governor Lesetja Kganyago warned last month that more than 100,000 jobs could be at risk if the tariffs remain in place.
South Africa continues to struggle with one of the world’s highest unemployment rates, compounded by weak economic growth.
Trade Relations Under Strain
The tariff decision underscores deteriorating relations between Washington and Pretoria. Since assuming office, President Trump has clashed with South Africa over trade and political issues, including repeated allegations of attacks on White farmers, claims dismissed by South African officials as false.
The Trump administration has also taken a hard line against BRICS member states, with South Africa being a prominent member alongside Brazil, Russia, India, and China.
Negotiations Ongoing
Ramaphosa confirmed that South Africa has submitted a framework proposal for a new trade accord with the US, aimed at enhancing investment and stabilizing relations. “All channels of communication remain open to engage with the US and our negotiators are ready pending invitation from the US,” he said.
Details of the relief plan are expected in due course. According to government officials, the package will include measures to support companies in diversifying export markets and mitigating the immediate impact of the tariffs.
Outlook
Analysts say the relief measures will be critical to limiting job losses and maintaining investor confidence while trade negotiations continue. The government’s ability to strike a new accord with Washington is expected to determine the long-term stability of South Africa’s export sectors.