South African Exports to U.S. Plummet After Tariffs

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South African Exports to U.S. Plummet After Tariffs
South African Exports to U.S. Plummet After Tariffs

Africa-Press – South-Africa. The United States’ Census Bureau’s latest data on international trade in goods and services shows that South African exports to the country plummeted after tariffs were announced.

The US Census Bureau releases the U.S. International Trade in Goods and Services report in collaboration with the US Bureau of Economic Analysis (BEA).

The US Census Bureau is a federal statistical agency within the U.S. Department of Commerce, responsible for statistics about the American economy.

Its data showed that South Africa’s exports to the United States in January, February, and March 2025 averaged $2,333 million per month.

However, after US President Donald Trump’s ‘Liberation Day’ announcement on 2 April 2025 that South Africa will be hit with higher tariffs, things changed.

Trump imposed 30% tariffs on South Africa, calling the country one of the worst offenders in terms of unequal trade with the United States.

However, he paused these tariffs for 90 days to allow affected countries, including South Africa, to broker a deal.

The United States introduced a 10% baseline tariff that applied across all imports, regardless of their origin, including those from South Africa.

On 3 April 2025, it also imposed a 25% tariff on imported passenger vehicles and light trucks under Section 232, citing national security concerns.

The new tariffs and uncertainty about South Africa’s future regarding US trade relations had an immediate effect on exports.

In April, May, and June 2025, South African exports to the United States plummeted to an average of $832 million per month.

The decrease in exports was mainly due to two export categories:

Exports of Pearls, Precious Stones, and Precious Metals fell from $3 billion in February to $401 million in June.

Vehicle exports decreased from $121 million in January to $35 million in June

These categories previously benefited from the African Growth and Opportunity Act (AGOA), which gave local companies tariff-free access to the United States.

Trump’s new tariffs effectively ended South Africa’s AGOA benefits, which will hurt many local industries hard.

On Monday, 7 July 2025, Trump unveiled a wave of letters that threatened to impose higher duties on American trading partners. South Africa was, once again, included.

He indicated that he was open to discussions with affected countries on the increased tariffs until at least 1 August 2025.

South Africa bungled the negotiations. On 1 August 2025, the White House confirmed in an Executive Order that South Africa will receive a 30% tariff starting 7 August 2025.

At one minute past midnight on Thursday morning, the 30% tariff on South African goods imported into the United States took effect.

This means that many industries which export goods to the United States, like agriculture and the automotive sector, will have to adapt to the new trade reality.

The chart below shows the impact of the United States’ tariffs on South African exports to the United States.

Year-on-year comparison of South African exports to the United States

The large export numbers at the start of 2025 may have been related to United States companies stocking up on South African products ahead of the anticipated tariffs.

However, even with that, South Africa’s exports to the United States decreased significantly since the US imposed additional tariffs on the country in April.

Exports from South Africa to the United States fell from R17.3 billion to R15.6 billion in April 2024 compared to April 2025.

In May 2024, exports to the United States amounted to R19.1 billion. It declined to R14.8 billion in May 2025. In June 2024, it was R21.7 billion, while in June 2025, it was only R14.7 billion.

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