
Ramaphosa announces urgent measures to shield South African firms from Trump's tariff fallout
South Africa is preparing a package to support companies that are vulnerable to the US tariffs, after it failed to secure a trade deal with Washington before a deadline set by US President Donald Trump.
'All channels of communication remain open to engage with the US, and our negotiators are ready pending invitation from the US,' President Cyril Ramaphosa said in a statement on Friday morning.
'In the meantime, government is finalising a package to support companies that are vulnerable to the reciprocal tariffs. The package consists of a number of measures to assist companies, producers and workers affected by the tariffs on SA exports to the US. The details of the measures will be announced in due course,' said Ramaphosa.
This comes after the Department of Trade, Industry and Competition launched an export support desk on Thursday night as one of its 'urgent interventions' to support South African exporters affected by the tariffs.
On Thursday, Trump signed an executive order placing new tariff rates on dozens of countries, hours before the 1 August 2025 deadline he had set for deals to be made. Some countries received modified tariff rates, while South Africa's remained at the 30% previously proposed by the US.
(Source: The Outlier)
According to the executive order, the higher import duty rates will take effect seven days from the date of the order.
'All applicable exceptions published in the previous US executive order are set to remain in force, and these exceptions covered products such as copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, stainless steel scrap and energy products,' said Ramaphosa.
South African officials have been working frantically for months to secure a trade deal with the US to avert Trump's punishing tariffs.
South Africa proffered a proposed framework deal to US trade representatives in Washington in May, before Ramaphosa and Trump met at the White House. Representatives were later told they needed to revise this proposal, in accordance with the Trump administration's new template for US trade with sub-Saharan Africa, which they were told would be shared ' soon '.
Earlier this week, it appeared the country was still waiting for this template.
In his statement, Ramaphosa said the department was in 'constant contact' with the US on its framework deal.
He said trade relations between SA and the US were 'complementary in nature' and that South African exports 'do not pose a threat' to US industry.
'South Africa will continue to pursue all diplomatic efforts to safeguard its national interests. It is important that as a country we keep our people at work and our companies producing some of the high-quality products destined for many parts of the world.
'To this end, government will intensify its diversification strategy to create resilience of our economy, and is working with export councils and industry associations, as well as top exporters to the US with a view to assist with alternative markets,' he said.
Call to renew 'intensive negotiations'
Dr Boitshoko Ntshabele, the CEO of the Citrus Growers Association, told Daily Maverick the 30% tariff 'will be felt most acutely in rural communities in the Northern and Western Cape, the two provinces from which we export to the US'.
Ntshabele said it was still possible to reach a trade deal with the US before 7 August, and called on Ramaphosa to renew 'intensive negotiations'.
'The category of seasonal fresh produce offers clear mutual benefits to both countries. South African citrus is exported to the US during the northern hemisphere's summer months. This secures continued supply in the category and in no way threatens domestic US growers.
'It is notable that Brazilian orange juice has been exempted from US tariffs. Fresh South African citrus plays a significant role in keeping America healthy, keeping citrus consumers in the category, and in avoiding possible citrus price increases.
'We have passed the middle of the southern hemisphere's citrus season, and local citrus growers have managed to accelerate a limited number of shipments to the US in the past weeks, which has mitigated some of the effects of the tariff on the current season's US exports. But should a beneficial trade deal not be concluded, our next export season will feel the full effect of the tariff.'
Ntshabele welcomed the department's emergency measures, but said that without a deal, 'Our growers in the Western and Northern Cape will face a potentially devastating scenario, especially since the US citrus market's appetite for our produce until very recently offered the potential for creating many more local citrus jobs.'
'No company can compete with 30% tariffs'
The Congress of South African Trade Unions (Cosatu) on Friday said it was 'extremely concerned' about the impact of the 30% tariff on all South African goods, barring minerals.
'We fear the devastation this will wreak upon farmworkers in the citrus industry from the Western Cape to Limpopo, to motor manufacturing workers from the Eastern Cape to Gauteng. No company can compete with 30% tariffs. Many may close,' said Cosatu in a statement.
Daily Maverick reported previously that Trump's punishing tariffs would kneecap South African industries, including the automotive sector and the citrus industry.
'This calamity has been made worse as South Africa has been unfairly made a global skunk with comparatively far better tariffs of 15% announced for neighbouring states, economic sector competitors and most of the world, ironically including many regimes with dubious understandings of the rule of law and real human rights abuses and genocides, who will now have a real advantage over South African exports,' Cosatu added.
In a statement on Friday morning, DA spokespersons on Trade, Industry and International Relations, MPs Toby Chance and Ryan Smith, said that the commencement of the 30% tariffs on SA goods was a 'devastating outcome' for the country.
'Both the departments of Trade, Industry and Competition, and International Relations and Cooperation should hang their heads in profound shame today. This 'no deal' scenario is due to sheer negligence, failed diplomacy and ineptitude,' they said.
The Nelson Mandela Bay Business Chamber said that the imposition of the 30% tariffs was a 'big blow for local businesses, especially in the automotive and agricultural sectors'.
'The Eastern Cape economy is likely to be the most adversely affected in the country by these developments.
'We are deeply concerned about the impact these developments may have on our automotive industry, which is anchored by the Original Equipment Manufacturers (OEMs) which undertake completely knocked down assembly in South Africa. These OEMs are responsible for creating well over a 100,000 jobs at their own operations and within their components supplier networks.
'Furthermore it is estimated that the knock-on employment impact of these OEMs and components manufacturers results in over 500,000 formal jobs being created across the entire automotive supply chain. Around 40% of automotive employment in the country is located in the Eastern Cape,' the chamber said in a statement. DM
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