Bloodbath on the JSE

South African stocks plunged the most in five years as steep US tariffs on the country’s exports cloud the outlook for corporate profits and the economy.

The FTSE/ JSE Africa Africa All Share Index fell as much as 4.5% in Johannesburg, its biggest intraday drop since March 2020.

Banks were the biggest drag by index points, while other South Africa Inc. sectors including telecommunications, personal care, retail and life insurance also took a hit.

On Wednesday, President Donald Trump slapped a 31% tax on imports from South Africa, one of the highest levies he imposed in a sweeping revamp of global trade that has rattled markets around the world.

The US is South Africa’s biggest trading partner after China, accounting for about 11% of the country’s exports, according to data compiled by Bloomberg.

“With the uneven tariff impositions, demand for South African goods will lose out,” said Annabel Bishop, chief economist at Investec Bank.

Sasol was the worst-performing single stock in the broad index, underscoring concerns about how the tariffs will affect supply chains in the highly integrated global economy.

“Sasol’s direct export exposure to the US is limited, though some of its industrial inputs are part of broader global supply chains, and higher costs due to the additional levies can also trim its margins,” said Salih Yilmaz, a Bloomberg Intelligence analyst.

Platinum miners, including Impala Platinum and Northam Platinum, were among the biggest decliners. While platinum-group metals are excluded from the tariffs, there is concern the levies on car exports to the US will reduce demand for the metals, which are used in gasoline-powered engines.

“Vehicle prices in the US will increase because of the 25% tariff the Trump administration has imposed on all vehicle imports,” said Hugo Pienaar, chief economist at the Minerals Council South Africa, an industry group.

“Not only will this slow demand for automobiles in the US, but car makers in other countries are likely to moderate production as a result.”

Investor concern about a rift in the governing coalition over tax increases in the budget is also weighing on local markets.

With the business-friendly Democratic Alliance on the brink of exiting the coalition, the biggest partner, the African National Congress, may have to look to its left for support.

The South African equity benchmark was 3.5% lower as of 4:10 p.m. in Johannesburg, on track for its lowest close since January.

The rand was little changed following its biggest two-day drop since Aug. 2023, while yields on 10-year government bonds climbed to the highest in eight months.