South African President Cyril Ramaphosa has called for a bilateral and mutually beneficial trade agreement with the United States following President Donald Trump’s sweeping global tariffs, which include a 30% levy on South African exports.
Trump’s new trade regime, announced during a Rose Garden event themed “Liberation Day”, imposes a 10% baseline tariff on all imports into the US, with higher rates—up to 50%—for select countries. The move marks a significant departure from decades of US-led free trade policies and has rattled global markets.
South Africa Calls for Dialogue
Reacting to the development, Presidential spokesperson Vincent Magwenya said in a statement that South Africa is “deeply concerned” about the tariff hike and its implications on trade relations and economic stability.
“While South Africa remains committed to a mutually beneficial trade relationship with the United States, these unilateral and punitive tariffs pose a threat to trade and shared prosperity,” the statement read.
Ramaphosa is now seeking a new trade framework with Washington to ensure long-term economic certainty for both nations.
Tariff Impact on Africa
Under the revised tariff structure, several African nations are hit with steep levies:
- Lesotho – 50%
- Madagascar – 47%
- Mauritius – 40%
- Botswana – 37%
- South Africa – 30%
- Nigeria – 14%
- Others (Kenya, Ghana, Ethiopia, Tanzania, Uganda, Senegal, Liberia) – 10%
Trump administration officials stated that the tariffs are aimed at leveling the playing field, particularly with countries that enjoy free access to US markets while heavily taxing American goods.
Lesotho Faces Heaviest Hit
Lesotho, one of the hardest hit with a 50% tariff, reportedly imposes a 99% tariff on American goods while enjoying duty-free access to the US. In 2024, Lesotho earned $237.3 million from trade with the US, while the US made just $2.8 million from Lesotho.
The White House labeled the move a “reciprocal tariff” to correct trade imbalances.
Impact on South African Exports
According to the Minerals Council South Africa, iron ore and diamonds are among the exports affected by the new 30% tariff, while other mineral exports appear to be exempt. The Council raised concerns about the long-term impact on demand for South African goods, particularly as US auto tariffs have already been raised to 25%, dampening global car production and related mineral demand.
However, South Africa’s weakened rand may offer some cushion by making exports more competitively priced on the global market.
Market Reaction: Wall Street Tumbles
Following the announcement, US markets took a hit:
- Dow Jones fell by 2.8%
- S&P 500 dropped 3.3%
- Nasdaq sank 4.4%
Sectors including tech, automotive, and consumer goods were among the worst affected.
White House spokesperson Karoline Leavitt, responding to the market drop, remained firm:
“To anyone on Wall Street this morning, I would say — trust in President Trump.”
Leavitt emphasized that the tariffs are not negotiable, though Trump remains open to diplomatic engagement.
As South Africa pushes for renewed talks, the world watches closely to see whether diplomacy can defuse the growing trade tensions triggered by the US’s hardline stance.
