Finance

South Africa hit by 30% tariffs from United States

United States President Donald Trump has informed South African President Cyril Ramaphosa that, from 1 August 2025, a 30% tariff will apply to all products from South Africa.

On 7 July 2025, Trump published a letter to Ramaphosa on his Truth Social network, outlining the new tariffs.

He began by stating that the United States has agreed to continue working with South Africa, despite having a significant Trade Deficit with the country.

“Nevertheless, we have decided to move forward with you, but only with more balanced and fair trade,” Trump said.

“Therefore, we invite you to participate in the extraordinary economy of the United States, the number one market in the world, by far.”

He said the two countries had years to discuss their trading relationship and that the United States must now move away from long-term and very persistent Trade Deficits.

He said these trade deficits are largely a result of South Africa’s tariff and non-tariff policies, as well as its trade barriers. “Our relationship has been, unfortunately, far from reciprocal,” he said.

“Starting on August 1, 2025, we will charge South Africa a Tariff of only 30% on any and all South African products sent into the United States, separate from all Sectoral Tariffs,” Trump said.

Trump warned that goods transshipped, moving them from one ship to another, to evade a higher tariff, will be subject to that higher tariff.

“Please understand that the 30% number is far less than what is needed to eliminate the trade deficit disparity we have with your country,” he said.

He added that there will be no tariff if South Africa or companies within South Africa decide to build or manufacture products within the United States.

“In fact, we will do everything possible to get approvals quickly, professionally, and routinely. In other words, in a matter of weeks,” he said.

Trump further warned that if, for any reason, SA decides to raise their tariffs, then whatever number they choose to raise them by will be added onto the 30% that we charge.

“Please understand that these tariffs are necessary to correct the many years of South Africa’s tariff and non-tariff policies and trade barriers,” he said.

He reiterated that these policies caused an unsustainable trade deficit against the United States. “This deficit is a major threat to our economy and, indeed, our national security,” he said.

The US President said they look forward to working with South Africa as its trading partner for many years to come.

Trump offered an olive branch to Ramaphosa in the last paragraph of his letter, urging South Africa to lift tariffs on United States products.

“If you wish to open your heretofore closed trading markets to the United States, and eliminate your tariff, and non-tariff, policies and trade barriers, we will, perhaps, consider an adjustment to this letter,” he said.

“These tariffs may be modified, upward or downward, depending on our relationship with your country. You will never be disappointed with the United States of America.”

Other nations hit as well

US President Donald Trump announcing wide-reaching tariffs on several countries

South Africa joins numerous other nations that have also received letters from the United States President on Monday.

These include levies of 25% on goods from Japan, South Korea, Malaysia and Kazakhstan, while Laos and Myanmar would face a 40% levy.

The nations were the first in what the president promised would be a flurry of unilateral warnings and trade deals announced on Monday.

White House Press Secretary Karoline Leavitt said there would be around a dozen countries that receive notifications about their tariffs Monday, directly from the president.

Additional letters will come in the coming days, she said.

Trump’s second-term rush to overhaul US trade policies has served as a steady source of uncertainty for markets, central bankers and executives.

They are trying to game out the effect on production, inventories, hiring, inflation and consumer demand.

Many of the tariff rates shared on his Truth Social platform were largely in line with what Trump had already announced nations were likely to face.

After a 90-day reprieve from his initial so-called “reciprocal” tariffs, Trump lowered those duties to 10% to allow time for negotiations.

Few nations did so successfully in the short time given, though Trump’s latest move effectively offers another extension.

The delay is expected to benefit all nations facing so-called reciprocal tariffs, and not just those who are issued the presidential letters in the coming hours and days, Leavitt said.

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