Businesses in South Africa scramble for Plan B

The rising uncertainty triggered by US President Donald Trump’s tariffs is forcing South African manufacturers to rethink their reliance on the world’s biggest consumer market. 

Local companies are now looking for alternative markets on the continent and abroad after being left like “deer in the headlights” because of the tariffs, Amith Singh, national manager for manufacturing at Nedbank Group Ltd., said in an interview in Johannesburg on Friday. 

As much as manufacturers knew it was coming, they didn’t know the full extent, he said.

Trump on April 2 announced reciprocal tariffs on trading partners, including a 30% tax on South Africa, before pausing them for 90-days while keeping 10% duties on most countries.

He also maintained a 25% tariff on vehicles produced outside the US.

Last year South Africa shipped 25,553 vehicles to the US, comprising 6.5% of total automotive exports, according to the Automotive Business Council.

Beyond the tariffs, manufacturers are also facing the possibility of not being able to access US ports, and if they do, their goods could be sent back, interrupting their cash flows, Singh said. 

These concerns have them exploring what benefits the Africa Continental Free Trade Area could offer, as well as opportunities offered by markets including Egypt, Ghana, Morocco, Kenya. 

“Many clients are controlling what they can control, as opposed to having total reliance on the government engaging with the US, and on President Trump changing some of these tariffs,” Singh said.

“Control the controllables, then there is less out there that will be to your demise.”