Following the 30% unilateral tariff imposed by the United States which came into force on 7 August 2025, Government has been implementing a response anchored on five key elements: i) continued engagement with the United States to secure a deal and reduce the tariffs; ii) diversification of exports to alternate markets; (iii) an economic response package to vulnerable companies and workers; iv) trade defense against import surge and dumping; and v) demand side interventions.
Therefore, the press briefing will provide an update on progress on these key elements:
i. Continued engagement with the United States to secure a deal and reduce the tariffs
Cabinet has approved that South Africa submits a revised offer as a basis for negotiations with the US. The new offer builds on the previous offer submitted in May 2025. The new offer substantively responds to the issues the US has raised in the 2025 National Trade Estimates Report.
South Africa has already addressed sanitary and phytosanitary measures in compliance with the bio-security protocols affecting:
a. Poultry – South Africa granted market access under the conditional self-ban and self-lifting system. This will ensure that the US is able to leverage the Tariff Rate Quota of 72 000 tons already agreed in 2016.
b. Blueberries - granted market access for states that are free of fruit fly and agreed to mitigation measures with those states with fruit fly; and
c. Pork: which is open subject to the bio-security requirements.
Consequently, the USA-Africa Trade Desk has informed us that it will be shipping containers of poultry and pork to South Africa in two weeks’ time, which is testimony that these issues have been resolved. The shipments will come from the states of Georgia, Mississippi, South Carolina, North Carolina and Alabama through the Ports of New Orleans in Louisiana, Savanna in Georgia, and Norfolk in Virginia.
Another significant request from the US, was that South Africa consider reducing tariffs as a way to address the deficit and tariff disparity with the European Union due to the SADC-EU Economic Partnership Agreement. South Africa continues consultations with industry and in this regard, in consultation with other members of the Southern African Customs Union, will identify specific lines to respond to this request.
ii) Economic Response Package
Cabinet has also endorsed the Economic Response Package that includes:
- The establishment of an Export Support Desk, which will serve as a direct point of contact for affected companies. Since being operational, thus far 23 companies had utilised the Export Support Desk and were accordingly assisted. In addition to queries processed, engagements were also initiated with more than 54 South African exporters to the United States, focussing on updates on the negotiations, clarifications on tariffs, elements of an economic response package and issues linked to market diversification.
- Measures to assist companies to absorb the tariff and facilitate long-term resilience and growth strategies to protect jobs and productive capacity in South Africa.
- A Localisation Support Fund (LSF) for affected companies to contribute to the national effort
- The Export and Competitiveness Support Programme (ECSP), which will include a working capital facility and plant and equipment facility to address short to medium term needs across all industries.
- Working with the Department of Employment Labour on measures to mitigate potential job losses, using existing instruments within its entities that can be adjusted to respond to the current challenges.
- Following consultations with the Competition Commission, a Block Exemption for Exporters has been introduced to enable collaboration and coordination by competitors. A draft Block Exemption will be published by the end of the week so that the process can be concluded expeditiously. Information will be available on https://www.thedtic.gov.za
iii) Diversification of Exports to Alternate Markets
The recent imposition of a 30% unilateral tariff by the United States on our exports is a significant policy shift that necessitates a clear and decisive response. South Africa has accelerated its diversification efforts of export markets and enhanced competitiveness to mitigate the economic impact of losing preferential trade access.
The diversification is a strategic imperative to ensure better resilience of our economy to economic shocks. This is not a plan B; it is a plan A for long term resilience and competitiveness.
We are committed to strengthening our relationships, particularly under the AfCFTA, to build regional resilience. We will also continue the work we have started with our European partners towards enhancing our trade and investment relations in a manner
that unlocks sustainable growth and development and entrenches South Africa in new supply-chains.
We are looking at Asia, including Japan, Vietnam and Thailand, the Middle East and India. We are pursuing these markets because we see growing demand, existing negotiations and a positive reception to South African products.
This is not just about trade numbers; it is directly linked to job protection. Diversification is about protecting rural livelihoods and sustainable agricultural growth for our people.
To achieve this, Government is deploying dedicated infrastructure for market expansion, including trade and agricultural attachés, increased export certification capacity and a concerted effort to align our biosecurity standards with the requirements of these new markets.
A high-level negotiation team, including both the dtic and the Department of Agriculture has been identified and is ready to engage the US towards a mutually beneficial agreement.
Our goal is to demonstrate that South African exports do not pose a threat to US industries and that our trade relationship is, in fact, complementary.
While the US is our 3rd largest trading partner after the EU and China, South Africa is the 43rd export destination for the United States and accounts for 0.25% of total US imports and is therefore not a threat to US production.
Furthermore, the US market accounts for about 4% of our total agriculture exports, or R9.8 billion ($537m) of our total agricultural exports, an increase of 104% from 2018. Government is going to do everything possible to keep the American market open for our goods. We will at the same time accelerate our efforts to diversify markets and build on the efforts we have put in place to ensure predictability in trade and leverage all our existing partnerships to secure markets for our products.
iv) Trade defense to protect domestic industry against import surge and dumping
The unilateral tariffs imposed by the United States of America do not only apply to South Africa. They also affect over 130 trading partners with whom American consumers and producers interact. In this regard, many of the orders destined for that nation that now face prohibitive restrictions to enter that market, will seek out other ‘outlets’ for such production. Furthermore, chronic overcapacity observed in the world markets for key product markets like steel, glass, subsidized agricultural products, solar and automotive vehicles will make this search incessantly harmful for our domestic industry. As such, South Africa stands ready to make use of its trade remedy measures to safeguard and protect its industry, within the prevailing agreements of the World Trade Organization.
This will involve consideration and on the balance of evidence, the use of anti-dumping, anti-subsidy and safeguard measures to protect domestic industry which may be affected by such trade deflection and/or diversion.
v) Demand side interventions to leverage on buying power by local consumers, private sector and government
Proudly South Africa will intensify outreach with corporates and retailers through its online store and Market Access Platform (MAP) procurement tool targeted at the private sector to support increased domestic sales of products, with future export capability of the online platform to be used to assist with export market diversification.
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