Small businesses brace for Trump tariffs, rising costs and funding hurdles
As of 1 August, a 30% import tariff on all South African exports to the US will come into effect, a move that could particularly impact SME exporters. Although only about 8% of South African exports go to the US – largely minerals and metals, which may be exempt – key sectors like citrus farming and automotive manufacturing are at risk, said Izak Odendaal, Investment Strategist at Old Mutual Wealth.
'This is bad news for many South African SMEs who currently export to the US, particularly those involved in the agricultural, automotive, and mining sectors,' said Miguel da Silva, Group Executive of Business Banking at TymeBank. 'The tariff increases will also have repercussions for the broader economy, with commentators saying the move could lead to thousands of job losses across the affected sectors.'
The tariff order, signed by US President Donald Trump on July 7, follows a suspension of his April 2 'Liberation Day' tariffs, which he placed on pause following an extremely negative market reaction in America. 'The only difference seems to be rounding, so that South Africa gets 30% instead of 34%,' said Odendaal of the new tariffs when compared to the April announcement.
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The South African
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