US tariffs put 30,000 South African jobs at risk, officials say


By MICHELLE GUMEDE, Associated Press

JOHANNESBURG (AP) — U.S. reciprocal tariffs have put an estimated 30,000 jobs at risk, South African authorities said Monday, four days before a 30% U.S. tariff on most imports from South Africa kicks in.

South Africa was slapped with one of the highest tariff rates by its third-largest trading partner — after China and the EU — creating uncertainty for the future of some export industries and catapulting a scramble for new markets outside the U.S. Tariffs come into effect on Aug. 8.

In an update on mitigation measures, a senior government official warned that an estimated 30,000 jobs were in jeopardy if the response to the higher tariffs was “mismanaged”.

Trucks move amid containers stacked at a depo, in Johannesburg, South Africa, Friday, Aug. 1, 2025. (AP Photo/Themba Hadebe)

“We base this on the ongoing consultations that we have with all the sectors of the economy from automotive, agriculture and all the other sectors that are going to be impacted,” said Simphiwe Hamilton, director-general of the Department of Trade, Industry and Competition.

South Africa is already grappling with stubbornly high unemployment rates. The official rate was 32,9% in the first quarter of 2025 according to StatsSA, the national statistical agency, while the youth unemployment rate increased from 44,6% in the fourth quarter of 2024 to 46,1% in the first quarter of 2025.

In his weekly public letter on Monday, President Cyril Ramaphosa said that South Africa must adapt swiftly to the tariffs since they could have a big impact on the economy, the industries that rely heavily on exports to the U.S. and the workers they employ.

“As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US,” he said.

“Our foremost priority is protecting our export industries. We will continue to engage the US in an attempt to preserve market access for our products.”

President Donald Trump has been highly critical of the country’s Black-led government over a new land law he claims discriminates against white people.

Negotiations with the U.S. have been complicated and unprecedented, according to South Africa’s ministers, who denied rumors that the lack of an ambassador in the U.S affected the result of the talks. The Trump administration expelled Ebrahim Rasool, South Africa’s ambassador to Washington, in mid-March, accusing him of being a “race-baiting politician” who hates Trump.

International Relations Minister Ronald Lamola highlighted that even countries with ambassadors in the U.S. and allies of Washington had been hard hit with tariffs. However, Lamola confirmed that the process of appointing a replacement for Rasool was “at an advanced stage”.

The U.S. accounts for 7.5% of South Africa’s global exports. However, several sectors, accounting for 35% of exports to the U.S., remain exempt from the tariffs. These include copper, pharmaceuticals, semiconductors, lumber products, certain critical minerals, stainless steel scrap and energy products remain exempted from the tariffs.



Source link

Related Posts