Trump's trade war: US slaps 30% tariff on South African imports

Source: Source: Donald J. Trump/Facebook.

Trump said his tariffs are slated to impact at least 60 countries, and he calculated each individual country's tariff rate by imposing half of what those countries charge the US on American goods.

Speaking at the "Make America Wealthy Again" event at the White House's Rose Garden on Wednesday, 2 April 2025, Trump said the tariffs are intended to counterbalance the trade barriers that US exports face in South Africa and other countries. "They will create a hard reset on US industry, eventually leading to a stronger economy and lower prices for US consumers," he added.

He detailed an overview of the reciprocal tariff-rate programme.

Effective as of Thursday, 3 April 2025:
49% on Cambodia
46% on Vietnam
34% on China
32% on Taiwan
32% on Indonesia
31% on Switzerland
26% on India
25% on South Korea
24% on Japan
20% on the European Union
10% on the UK
10% on Brazil
10% on Singapore

A 25% universal tariff for all countries on all foreign-made automobiles being imported into the US

Beyond country-specific tariffs Trump also announced a 10% minimum baseline tariffs for all imports into the US.

"Should countries want a zero tariff rate then they are encouraged to build their product right here in the US," Trump said.

He highlighted that in the last two and a half months, companies such as Apple, Eli Lilly, NVIDIA and others have already committed to significant investments in US production facilities.

In February 2025, Apple, for example announced plans to invest over $500bn in the US and hire 20,000 people over the next four years. This investment focuses on expanding research and development, silicon engineering, software development, and AI and machine learning. The company also plans to build new manufacturing facilities, including an advanced AI server manufacturing factory near Houston, Texas.

Pharma giants push back against Trump's planned tariff rollout

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Also in February 2025, Eli Lilly announced plans to spend at least $27bn to build four new manufacturing plants in the US over the next five years. These facilities are expected to create more than 3,000 jobs for skilled workers and 10,000 construction jobs. The locations of these plants are to be announced later this year.

Global trade uncertainty

The Trump administration's move raises concerns over global trade tensions. Following the recent tariff announcements, social-media platform X erupted with discussions over fears that escalating trade tensions could lead to retaliatory actions from trading partners and the onset of a US recession. Many commentators and analysts warn that the tariffs could disrupt supply chains, raise costs, and heighten uncertainty in global markets, potentially triggering a broader economic slowdown.

South Africa’s export competitiveness has also been analysed in light of the recent tariff changes.

Data indicates that South Africa's average applied tariff rate across all US products imported into the country was about 7.11% as of 2020. This discrepancy raises questions about the specific calculations or data sources used by the US administration to determine the 30% tariff rate.

Given this tariff rate is relatively low, certain US products may face higher tariffs. For example, South Africa has imposed tariffs of up to 62% on specific poultry products. Beyond tariffs, non-tariff barriers such as quotas, import permits, and technical standards may also have been factored into the final 30% trade tariff rate imposed by the Trump administration.

Tariffs threaten growth

South Africa's government has expressed concern over these tariffs, and economists have warned that the tariffs could destabilise South Africa's economy, potentially reducing economic growth by up to 0.3 percentage points. This concern arises from the potential impact on key industries and overall economic performance.

Of particular concern is the US' imposition of a universal 25% tariff on all automobile imports, effective April 3, 2025 particularly as South Africa previously benefited from duty-free access under the African Growth and Opportunity Act (AGOA) and provided certain African countries with preferential access to the US market.

South Africa's exports of parts and vehicles to the United States are estimated at more than $2bn.

South Africa's Trade Minister Parks Tau has stated that the country is seeking a meeting with US authorities to discuss the potential impact of tariffs, particularly on its automotive and textile sectors.

Resetting the US industry

Trump dubbed 2 April 2025 as Liberation Day for the US saying the launch of reciprocal tariffs in the US will create a hard reset on the country's industry. He said the US government is pivoting back to tariff revenue where foreign countries "would start paying the money necessary to run our government rather than its citizens doing so via income tax."

Trump stressed that, "America would supercharge its domestic industrial base; pry open foreign markets and break down foreign trade barriers."

He said 2 April will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that "we began to make America wealthy again".