Trade, Industry and Competition Minister Parks Tau. Picture: Gallo Images/Sharon Seretlo South Africa is starting to feel the impact of the US tariff, especially for automotive exports that decreased by 79%, while the country’s exports to the US between January and September last year decreased by 11%. US president Donald Trump instituted a tariff of 30% on goods from South Africa entering the US on 1 August last year.
The information was part of a parliamentary answer from minister of trade, industry and competition, Parks Tau when MP Wesley Douglas asked him if his department has already determined the exact impact of the US trade tariffs on the exports and local industries. Douglas also wanted to know if there was an update on the department’s efforts to find new high-growth markets and if progress was made in the process of developing the country’s response the US draft Agreement on Reciprocal Tariffs. Tau said in parliament in October that the 30% tariff reimposed by the US may shave off 0.2% of South Africa’s economic growth and that his department and partners made significant progress in opening up vast new markets.
Tau said in his reply that South Africa’s exports to the US face two kinds of tariffs The minister points out that on 14 November, Trump also issued an executive order exempting some agricultural products from the reciprocal tariffs. These included coffee, tea, bananas, oranges, tomatoes, beef, tropical fruits, fruit juices, some fertilisers and food products. These exemptions further reduce the impact of the reciprocal tariffs on SA exports.
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From January to September 2025 South Africa’s exports to the US amounted to R108 billion compared to R120 billion for January to September 2024, a decline of 11%. Tau said the decline was more prominent in vehicles, which decreased by 79%, while mineral products decreased by 27%, machinery and mechanical appliances by 24% and raw hides and skins, leather, fur skins and fur articles decreased by 36%. Tau added that in the case of products where the US exports decreased they showed a positive growth when exported to other countries,indicating a positive impact of diversification efforts, with the exception of mineral products that decreased by 4%. For example, he said, the exports of vehicles to the world over the same period increased from R110 billion to R122 billion, an increase of 10% and machinery and mechanical appliances maintained the same level on exports to the world at R107 billion, while raw hides and skins decreased by 7% from R3.3 billion to R3.1 billion.
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