How the 2025 US Tariffs Impact South Africa – What Investors Need to Know

Update: Ongoing Tariff Talks Between South Africa and the United States

South Africa continues to face uncertainty over the proposed 30% tariff by the United States on South African goods, but recent developments indicate there may be room for negotiation and resolution.

President Cyril Ramaphosa has expressed optimism following diplomatic engagements with Washington, stating that the tariff rate is still subject to change. According to Ramaphosa, the US has committed to keeping the tariff negotiable as talks progress. He also questioned the accuracy of the tariff calculation, noting that 56% of goods enter South Africa duty-free under the Most-Favoured-Nation (MFN) agreement, and 77% of US exports to South Africa currently enjoy a 0% duty.

This diplomatic approach comes as former US President Donald Trump unveiled a series of tariff threats—targeting BRICS countries in particular—but allowed room for negotiation until a final decision on August 1.

South Africa’s trade surplus with the US amounted to $2.2 billion last year, with $8.8 billion in total exports. Major export categories include precious metals, organic chemicals, and citrus. The agricultural sector, especially the R35 billion citrus industry, is under immediate threat if the tariffs are implemented during the current harvest season.

John Steenhuisen, Minister of Agriculture and leader of the Democratic Alliance, emphasized that the delayed tariff deadline suggests a deal may be possible. Meanwhile, South Africa awaits the US’s formal trade template following earlier engagements with US Assistant Trade Representative Connie Hamilton. A framework deal was submitted by Pretoria on May 20, and the local negotiating team has been instructed to urgently engage with the US based on this proposal.

President Ramaphosa also urged local companies and trade bodies to accelerate diversification efforts, reinforcing resilience in supply chains and decreasing overreliance on single export markets.

What This Means for South African Exporters

The proposed tariffs—if enforced—could significantly impact South African trade and export competitiveness, particularly in sectors like agriculture and mining. However, the window for negotiation provides a critical opportunity for mitigation. Exporters and investors should closely monitor developments as the August 1 deadline approaches.

2025 US Tariffs and Financial Markets – What Investors Should Expect

Just like during previous US trade policy shifts, markets reacted swiftly. Since the announcement:

  • Investors have shown a “risk-off” response, exiting/selling risk assets like equities

  • The US dollar weakened, and capital flows rotated toward Europe and China

  • Short-term volatility increased, but opportunities have also emerged in select regions

These dynamics present a chance for active asset managers to reposition portfolios and capitalize on mispriced assets or geographic dispersion in returns.

Why South African Investors Need Global Diversification in 2025

Given the uncertainty surrounding US-South Africa trade relations, investors with concentrated exposure to specific sectors or geographies may experience increased risk. Our approach is built around:

  • Global diversification, including exposure to developed and emerging markets

  • Risk-managed, actively managed portfolios tailored to your long-term goals

  • Tactical asset allocation that adjusts to global economic shifts

We work with seasoned investment managers who are equipped to navigate local and global market movements while protecting and growing your wealth.

Long-Term Strategy – Staying Invested Through Market Volatility

Periods of market stress often cause investors to react emotionally. However, selling during downturns locks in and realizes losses, while staying invested increases the likelihood of capturing the recovery.

Our advice to clients:

  • Trust the construction and balance of your portfolio

  • Avoid reactionary decisions based on short-term news

  • Maintain a long-term view supported by expert management

Our Commitment to South African Investors During the 2025 Tariff Cycle

We understand that geopolitical shifts like the 2025 US tariffs can raise concern. That’s why our team is actively analyzing the implications of these new trade barriers and adjusting strategies where necessary.

Our commitment is to:

  • Monitor global trade and currency movements daily

  • Make evidence-based investment decisions for your benefit

  • Continue to build resilient, globally diversified investment portfolios

Speak to our Financial Advisors and Planners

If you’re concerned about how the 2025 US tariffs on South Africa could affect your investment portfolio or business exports, now is the time to speak to us.