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South African President Cyril Ramaphosa has stressed the urgent need for a new trade agreement with the United States after Washington imposed steep 30% tariffs on South African imports.
The US, South Africa’s second-largest trading partner, plays a crucial role in the country’s economy, with thousands of jobs dependent on exports—particularly in the automotive sector. Ramaphosa, responding to President Donald Trump’s tariff announcement on Wednesday, said South Africa remains committed to a trade relationship that benefits both nations.
However, he criticised the unilateral tariff hikes, calling them punitive measures that create trade barriers and hinder shared prosperity. “The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the US as an essential step to secure long-term trade certainty,” Ramaphosa said in a statement.
Relations between Pretoria and Washington have soured under the Trump administration, which recently cut financial aid to South Africa over claims of discriminatory land policies. Tensions escalated further with the expulsion of South Africa’s ambassador last month.
South Africa is particularly keen on preserving the African Growth and Opportunity Act (AGOA), a trade deal that grants duty-free access to the US market for various African exports. The agreement, which expires this year, has been crucial for South Africa, the largest non-oil exporter under AGOA. In 2023 alone, the country earned $3.6 billion from AGOA-related exports, with vehicle shipments making up a significant portion.
The latest US tariffs, which include a 25% levy on imported automobiles, could severely impact the South African auto industry. Around 86,000 jobs are directly linked to AGOA within car manufacturing, with total employment—including subcontractors—rising to 125,000, according to industry estimates.
