South Africa Intensifies Diplomacy to Counter 30% US Tariffs, Diversify Trade

Cabinet has approved the submission of a revised trade offer to the US, building upon the framework submitted in May 2025.

South Africa is ramping up diplomatic and economic efforts to safeguard access to the American market in the wake of the United States’ imposition of a 30% unilateral tariff on South African exports.

Speaking at a media briefing in Pretoria alongside Minister of Agriculture John Steenhuisen, Trade, Industry and Competition Minister Parks Tau emphasized that the government is "pulling out all the stops" to secure a fair trade arrangement with the US while accelerating market diversification strategies to reduce dependency on any single trade partner.

A Five-Pillar Response Plan

Minister Tau outlined a five-pronged strategy to respond to the US tariffs:

1. Direct engagement with the US to secure a negotiated settlement and tariff reduction.

2. Diversification of export markets to reduce reliance on the US.

3. Economic response measures to protect vulnerable companies and workers.

4. Trade defense mechanisms to counter import surges and dumping.

5. Demand-side interventions to stimulate domestic consumption.

Cabinet has approved the submission of a revised trade offer to the US, building upon the framework submitted in May 2025. This updated proposal addresses key concerns raised in the 2025 US National Trade Estimates Report.

Signs of Progress

In a positive development, the USA-Africa Trade Desk has confirmed that shipments of poultry and pork from US states including Georgia, Mississippi, South Carolina, North Carolina, and Alabama will arrive in South Africa within two weeks. These shipments, routed through major ports in Louisiana, Georgia, and Virginia, signal that some bilateral trade concerns are being resolved.

Addressing Tariff Disparities

One US request involves reducing tariffs to address perceived disparities with the European Union, which benefits from preferential terms under the SADC-EU Economic Partnership Agreement. Tau said South Africa, in consultation with Southern African Customs Union (SACU) members, is considering specific tariff lines to meet this request while safeguarding domestic industries.

Diversification to Safeguard Jobs

Tau stressed that market diversification is central to protecting jobs, particularly in rural agricultural communities. Potential new markets under consideration include Japan, Vietnam, Thailand, the Middle East, and India—regions where South African products enjoy strong demand and a positive market reception.

To support this strategy, government will:

• Deploy trade and agricultural attachés to key markets.

• Increase export certification capacity.

• Align biosecurity standards with target markets’ requirements.

Economic Response Package

The government is finalizing an economic response package to cushion the blow from the tariff hike. This includes:

• Establishing an Export Support Desk to assist affected businesses.

• Creating a Localisation Fund to strengthen domestic supply chains.

Tau said the aim is to protect jobs, support rural livelihoods, and drive sustainable agricultural growth.

High-Level Negotiation Team

A joint negotiation team comprising officials from the Department of Trade, Industry and Competition (the dtic) and the Department of Agriculture has been tasked with engaging Washington at the highest levels.

“Our goal is to demonstrate that South African exports do not pose a threat to US industries and that our trade relationship is complementary rather than competitive,” Tau explained.

Wider Global Context

The Minister noted that South Africa is not the only country affected by the new US tariffs—over 130 trading partners have been hit by the measure. This underscores the global scope of the policy shift and the urgency for multilateral trade dialogue.

Long-Term Vision

Beyond the immediate crisis, South Africa aims to strengthen trade under the African Continental Free Trade Area (AfCFTA) and deepen relationships with European partners to secure sustainable, mutually beneficial growth. By embedding South African goods into diverse global supply chains, the country hopes to build economic resilience and reduce exposure to unilateral trade shocks.