Mr Jacques Moolman, President of the Cape Chamber of Commerce and Industry
South African can expect significant trade disruption resulting from the new US tariffs announced on Wednesday. However, the extent of the disruption remains unclear and could depend partly on how South Africa reacts.
US export producing industries such as agriculture, automotive, mining and boatbuilding now find themselves in the firing line of the hefty 30% tariff on all SA exports into the US. This is a hefty tariff relative to those imposed on most other countries.
The Western Cape produces a wide range of products for the US market, particularly agricultural produce, automotive components, and boats. Stakeholders in these sectors are still counting the potential cost of the Trump tariffs which almost certainly signal the end of duty-free access afforded to many SA exports under the African Growth and Opportunity Act — a free trade bill in place for the past 20 years.
The Cape Chamber will engage affected sectors to better understand the expected negative impacts, and to determine how they can be addressed.
President Trump has stated that there is still room for negotiation, informed partly by reciprocal tariffs imposed by the target countries on the US. This transactional approach suggests there may still be room for tariff adjustment for specific sectors, or for the country as a whole.
While much is unclear, we urge our government partners to proceed cautiously, mindful that many jobs and livelihoods are at stake. The US remains one of our biggest trading partners, with a much-needed and well-established market for many of our key products.
Trade disruption is inevitable; how we withstand this disruption will depend partly on our response in the coming months.
