SA jobs at risk as the US impose 30% tariff

By Zoliswa Mdawini

Picture of the South African and USA Flag. Photo by: firewest.co.za

South Africa is facing a potential jobs crisis as the United States prepares to impose a

sweeping 30% tariff on all South African exports from August 1st. The move, announced in a

formal communiqué from President Donald Trump to President Cyril Ramaphosa on July 7th,

risks slashing as many as 100,000 jobs—particularly in agriculture and automotive

manufacturing.

The rationale offered by the US President Donald Trump is familiar: a correction of what he

called “unsustainable trade deficits” caused by South Africa’s protective tariffs and non-tariff

barriers. Pretoria, however, views the announcement as a unilateral escalation. “This is a one-

sided decision,” said Mr Ramaphosa, adding that the rate may still be revised pending the

outcome of negotiations.

The agricultural sector is especially vulnerable. Citrus, grapes, and wine exports to the

US currently enjoy duty-free access. In 2024, South Africa’s farm exports to the United

States totalled $13.7bn, representing 4% of its total agricultural trade. The citrus industry

alone supports 35,000 jobs and contributes R38bn to the national economy. A steep tariff

would not only jeopardize margins but threaten whole regions dependent on seasonal farm

labour.

Meanwhile, the automotive sector, which contributes 4.3% to GDP and employs over

110,000 workers, faces similar exposure. The US ranks among South Africa’s top five export

destinations for vehicles and components. Tariff-induced price hikes could render South

African exports uncompetitive, amplifying a sector-wide downturn.

Cars on a assemble line in a car factory. Photo by: freepik.com

35,000 jobs are supported by South Africa’s citrus industry, which contributes R38 Billion

annually to the economy. The automotive sector is one of South Africa’s leading economic

sectors, contributing 4,3 percent to the country’s gross domestic product. It is also the

country’s fifth largest export sector, accounting for 18,1 percent of total exports, and employs

over 110,000 people, according to the SA automotive sector.

Sonja Boshoff, chairperson of Economic Development and Trade, warned that “a tariff of this

magnitude threatens not only the profitability of our exporters but the livelihoods of workers

and the economic stability of entire agricultural regions.” Her concerns echo broader

anxieties about cascading effects on supply chains, consumer prices, and local investment.

Labour markets are already under strain. Between March 2024 and March 2025, the economy shed 95,000 jobs. According to StatsSA, the unemployment rate rose from 31.9% to 32.9% in the first quarter of 2025—cementing South Africa’s status as one of the world’s most job-starved economies.

Reserve Bank Governor Lesetja Kganyago has called for urgent contingency planning.

Without diplomatic resolution or trade diversification, the tariff shock could mark a turning

point—one in which geopolitical shifts sharply collide with domestic fragility.

Edited By: Alex De Jongh