By AGISANANG SCUFF

8 July 2025 – The Select Committee on Economic Development and Trade has expressed grave concern over the impending 30% tariff imposed by the United States government on key South African exports, as the tariffs will have far-reaching consequences for exporters and on the broader ailing South African economy. The committee said the US tariff order, which was signed yesterday and is set to come into effect on 1 August 2025, undermines the historical US–SA trade cooperation and poses a serious threat to strategic sectors such as citrus, macadamia, automotive components, steel and aluminium.

The Chairperson of the Committee, Sonja Boshoff said these industries are not abstract economic indicators. Boshoff said they are lifelines for tens of thousands of workers, particularly in rural and small-town South Africa.

“South Africa’s citrus industry alone supports more than 35 000 jobs and contributes over R38 billion annually to the economy. A tariff of this magnitude threatens not only the profitability of our exporters, but the livelihoods of workers and the economic stability of entire agricultural regions.

“The tariff order also casts a dark shadow over the future of the African Growth and Opportunity Act (AGOA), which has long facilitated preferential access to US markets. With the new duty effectively neutralising those preferences, there is growing uncertainty for producers who depend on predictable market access to plan, invest and grow,” she said.

Boshoff further said it is critical that trade agreements are honoured in good faith. She added that no country can plan its industrial or export strategy under a cloud of sudden and unilateral tariff hikes.

“The committee recognises that the Department of Trade, Industry and Competition (DTIC) is pursuing negotiations with its US counterparts, reportedly offering strategic Liquefied Natural Gas procurement in exchange for a more reasonable tariff ceiling.

“However, such engagements must be swift, transparent and rooted in the national interest. We cannot afford diplomatic dithering. Every delay will deepen the uncertainty in our export industries,” said Boshoff.

She said the government must urgently finalise a sustainable trade path with the United States and, simultaneously, accelerate diversification into new markets across the EU, Asia and Africa. Boshoff said the committee calls on the DTIC and the Department of Agriculture to provide support packages and market reorientation strategies for the most affected industries.

“This must include logistics relief, export finance support, and new market facilitation, particularly for emerging farmers and SMEs. At a time when South Africa is battling record unemployment and low growth, punitive tariffs by our biggest trading partners are not just economic risks, they are catalysts for deeper inequality.

“We must respond with urgency, precision and policy agility. This unprecedented development cannot be approached with a let it go attitude. We call on the South African government to urgently send a high-level delegation to Washington to undertake repair of diplomatic ties and to reaffirm South Africa’s commitment to constructive engagement,” she said.

Meanwhile, the US President, Donald Trump signed the tariff order on 7 July 2025, after the withdrawal of US grant funding for critical programmes in South Africa. The tariff order, which will apply to all South African products entering the US market, will come into effect from 1 August 2025.

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