Ramaphosa responds to tariff and trade chaos

President Cyril Ramaphosa says that South Africa is vulnerable to international trade disruptions, but it working to make the country’s imports and exports more resilient—including branching out with trade partners.

South Africa, along with the rest of the world, have been hit by a frantic and chaotic trade war launched by US President Donald Trump this month.

From 5 April, the United States implemented a global 10% tariff on imports to the country, which was to be followed by much higher tariffs for countries is large trade imbalances with the states.

These additional tariffs ranged from 11% to 50% and included a 31% tariff on South Africa.

However, when the tariffs were to come into effect on 9 April, Trump did a surprise about-turn, putting them on hold for 90 days. The 10% tariff remains in effect.

While several key South African exports—like gold and other minerals—are exempt from the tariffs, the country’s big employers in agriculture and the automotive industry will suffer.

Combined, these two sectors employ over 1 million people, and with the African Growth and Opportunity Act (AGOA) likely to be off the table for the country, the risks to key components of South Africa’s economy are at risk.

According to Ramaphosa, these “unilateral actions and coercive measures” by the US undermine multilateral agreements and the global rules-based trading system, putting South Africa at risk.

He said that South Africa supports free and open trade, but it has to be predictable and governed by a rules-based system.

“This is particularly critical for developing economies, many of which remain locked into the lower end of global value chains,” he said.

“We are therefore working in different ways to make our domestic industries more resilient,” he said.

Ramaphosa’s plans for trade

Ramaphosa said that South Africa’s response to the chaos is to expand its trading options and trading partners so it can access more markets.

He said the country is working to boost the value of local exports by strengthening regulations—citing the recent signing of the Plant Health Act into law, which ensures that local crops align with international export requirements.

The country is also diversifying trade destinations for goods, products and services, including:

• Gaining access to the Thailand market for apples for the first time in 16 years
• Exporting avocados to Japan
• Gaining market access for South African table grapes to the Philippines

South Africa also recently expanded meat exports to Saudi Arabia.

Ramaphosa said the country will also deepen relations with countries and regions where it already has regional and bilateral trade agreements that provide preferential trade terms.

These include the Southern African Customs Union and the Southern African Development Community Free Trade Area.

Importantly, he said that the country is working to make effective use of the African Continental Free Trade Area (AfCFTA).

AfCFTA has been identified by several economists as a crucial agreement for South Africa to protect itself against the chaos caused by the US tariff war and resultant retaliations.

The agreement represents a vast, untapped trove of trade, where South Africa stands to gain billions of rands.

Ramaphosa said that the country has already launched its first wave of ‘Made in SA’ consumer goods, copper, cement, electrical and pharmaceutical goods and fresh produce, which made its way to other countries in Africa.

At last month’s European Union-South Africa Summit in Cape Town, Ramaphosa signed a trade and investment package worth around R90 billion.

“This package will support the export of more SA-made products into the EU,” he said.

Finally, the president said that South Africa will also put the money into its industries at home by increasing investment.

The 2025 Budget allocates increased funding to boost manufacturing and agro-processing, as well as for incentive programmes that strengthen local value chains and open access to key international markets, he said.

“As we undertake all these measures, South Africa will continue to advocate for a level playing field in global trade,” he said.