The Chairperson of the Select Committee on Economic Development and Trade (SCEDT), Ms Sonja Boshoff, has warned that the US administration’s newly imposed 30% tariff on South African exports will severely impact economic growth, job security, and trade predictability, according to a media statement released by Parliament on 8 July 2025.
The tariff, signed on 7 July and set to come into effect on 1 August 2025, targets key export industries — including citrus, macadamia nuts, automotive components, steel, and aluminium. “These industries are not abstract economic indicators; they are lifelines for tens of thousands of workers, particularly in rural and small‑town South Africa,” Boshoff emphasized.
South Africa’s citrus sector alone supports over 35,000 jobs and contributes upwards of R38 billion annually. Boshoff noted the tariff could “threaten not only the profitability of our exporters, but the livelihoods of workers and the economic stability of entire agricultural regions”.
The move also casts uncertainty over the future of AGOA (African Growth and Opportunity Act), which currently provides duty-free access to the U.S. market. The new tariff effectively undermines these preferential terms, raising serious concerns for producers relying on stable market access to plan and invest.
Boshoff urged the government to quickly negotiate with its U.S. counterparts, with the Department of Trade, Industry and Competition reportedly offering strategic LNG procurement in exchange for tariff relief. She stressed negotiations “must be swift, transparent and rooted in the national interest”.
Committee Demands & Strategy
- South Africa’s government, Boshoff said, must actively pursue a high-level delegation to Washington to repair diplomatic relations and reaffirm trade cooperation.
- The DTIC and Department of Agriculture should immediately roll out support packages, including:
- Export finance
- Logistics relief
- Market access support for emerging farmers and SMEs
- She warned that delays in response will only deepen uncertainty and devastate markets and livelihoods.
Broader Impact
South Africa is already grappling with high unemployment and sluggish economic growth. According to Boshoff, the tariff is not just an economic threat, but a potential catalyst for deepening inequality, disproportionately affecting vulnerable workers in affected sectors .
The SCEDT’s warning marks a clear wake-up call: South Africa must act urgently and strategically to protect its key export sectors, preserve jobs, and maintain international trade confidence. With the 30% tariff looming and AGOA preferences undermined, swift, decisive action from government and industry is essential to avert a deeper economic crisis.
