"Accelerate diversification": Ramaphosa issues code red amidst Trump's 30% tariffs
Image: AFP
President Cyril Ramaphosa has urged the government trade negotiations teams and South African companies to accelerate their diversification efforts after the United States slapped South Africa with 30% tariffs on all its exports to the United States from August 1.
The sweeping tariffs will apply to 'any and all South African products sent into the United States,' and are being imposed outside of any sectoral trade deals.
In a letter dated July 7, US President Donald Trump said the move was 'necessary to correct the many years of South Africa's Tariff, and Non Tariff, Policies and Trade Barriers,' blaming Pretoria for what he called 'unsustainable Trade Deficits against the United States.'
In response in the early hours on Tuesday, Ramaphosa said he had noted the correspondence from Trump on the unilateral imposition of a 30% trade tariff against South Africa.
Through the Presidency spokesperson Vincent Magwenya, Ramaphosa said he had further noted that South Africa was one of a number of countries to have received this communication on 7 July 2025.
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'This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States,' said the Presidency.
'Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data. In our interpretation of the available trade data, the average tariff imported goods entering South Africa stands at 7.6%. Importantly, 56% of goods enter South Africa at 0% most favoured nation tariff, with 77% of US goods entering the South African market under the 0% duty.'
In June 2023, the US ranked second largest destination for South Africa's exports after China and followed by the UK.
Major South African exports to the U.S. include: Precious stones and metals, motor vehicles, parts and accessories; iron and steel, machinery; aluminium products, ores , organic chemicals, edible fruit, chemical products and nickel products.
According to the Office of the US Trade Representative, US goods exports to South Africa in 2024 were $5.8 billion, down 18.3% from 2023 while US goods imports from South Africa were up 4.9% to $14.7bn during the same period.
As a result, the US goods trade deficit with South Africa was $8.8bn in 2024, a 29% increase from $2bn over 2023.
Trump said the US' relationship with South Africa has been 'unfortunately, far from reciprocal'.
'Starting on August 1, 2025, we will charge South Africa a Tariff of only 30%... Goods transshipped to evade a higher Tariff will be subject to that higher Tariff.'
Trump also warned that if South Africa were to retaliate by raising its own tariffs, those would be matched and added to by Washington.
'Whatever the number you choose to raise them by, will be added onto the 30% that we charge,' he wrote. 'This Deficit is a major threat to our Economy and, indeed, our National Security!'
Meanwhile, the Presidency said South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the US.
It said Ramaphosa has instructed the country's negotiating team to urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on 20 May 2025.
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