South Africa has warned that new U.S. tariffs, set to take effect next month, could endanger up to 30,000 domestic jobs, intensifying pressure on an economy already facing one of the world’s highest unemployment rates. Trade and Industry Minister Simphiwe Hamilton underscored the risk on Monday, citing consultations with sectors like automotive and agriculture, which are expected to bear the brunt of the 30% duties imposed by Washington.
“At this stage, we estimate approximately 30,000 jobs could be affected if the situation is mishandled,” said Hamilton, director-general of the Department of Trade, Industry, and Competition. His remarks came days after U.S. President Donald Trump finalized the levies last Thursday, hours before a July 31 deadline for trade negotiations. While several nations saw modified rates, South Africa’s tariffs remained unchanged and rank among the top five highest imposed under Trump’s order.
The U.S. is South Africa’s third-largest export market, absorbing 7.5% of its overseas sales, behind China (11%) and the European Union (17%). Analysts warn the tariffs could disrupt critical industries, with agricultural exports—such as citrus and wine—and automotive components facing immediate strain. The move comes as the country battles unemployment officially pegged at 32.9% in early 2025, according to StatsSA, the national statistics agency.
In response, Pretoria is preparing a multipronged strategy to mitigate losses. Government officials confirmed plans for diplomatic talks with the U.S., collaboration with other trading partners, and financial support for exporters. Specific measures include subsidies or tax relief for affected businesses, though details remain under discussion.
The tariffs, effective August 8, mark the latest escalation in global trade tensions. Critics argue they could strain U.S.-South Africa relations, which have seen steady collaboration in sectors like renewable energy and healthcare. However, Hamilton emphasized the government’s commitment to “protecting livelihoods while pursuing fair trade terms.”
Economists caution that prolonged tariffs might accelerate a shift in South African exports toward Asian and African markets, though rerouting supply chains could prove costly. For now, industries brace for impact, with agricultural unions urging swift government action to avoid export bottlenecks. As global markets react, the stakes are particularly high for a nation where job creation remains a central economic challenge.
