South Africa fights to cut 30% US tariff with revised trade offer as 30,000 jobs hang in the balance

South Africa is mounting a determined diplomatic and trade effort to reduce the 30% tariff imposed on its exports by US President Donald Trump's administration, with Trade, Industry, and Competition Minister Parks Tau confirming that Cabinet has approved a revised trade framework offer to be presented to Washington.

"We went to cabinet last week and got approval of what would constitute the latest offer to the US," Minister Tau said, without disclosing the specific terms of the proposed deal. The negotiations come as South Africa faces some of the highest tariff rates imposed under the Trump administration's sweeping global trade measures, placing it alongside Brazil, China, and Switzerland as among the most heavily affected economies.

The 30% tariff, which came into effect on August 7, 2025, has since been partially replaced by 15% Section 122 tariffs applied across all countries. However, South Africa continues to face significantly elevated rates compared to most of its trading competitors — a situation that threatens the livelihoods of an estimated 30,000 South African workers, particularly in the automotive manufacturing and agricultural export sectors.

The US Trade Representative (USTR) has further escalated pressure by launching formal investigations on March 12, 2026 into South Africa and 59 other economies under Section 301(b) of the Trade Act, examining alleged forced labour practices and unfair trade policies. Public hearings are scheduled for April 28, and written submissions are due by April 15. South African trade representatives are expected to respond vigorously.

To reduce its exposure to US trade disruption, South Africa is simultaneously pursuing new export markets. The Department of Trade, Industry and Competition (DTIC) is advancing stone fruit export deals to China and grain export agreements with Japan.

Domestically, South Africa's International Trade Administration Commission (ITAC) has moved to protect local industry from a different direction: the Commission has approved heavy import tariffs on Chinese steel for up to five years, following a formal finding of product dumping. Trade Minister Tau signed off on the measure, in a move that illustrates South Africa's determination to defend its industrial base from all sides.

The trade tensions with the United States form part of a broader diplomatic strain. The US boycotted the G20 summit hosted by South Africa in November 2025, and South Africa was subsequently excluded from a G7 meeting hosted by France. Despite these setbacks, the South African government has insisted it remains committed to constructive international engagement while firmly defending its trade interests.

Sources: American Chamber of Commerce in South Africa (AmCham SA) / PBS NewsHour / Department of Trade, Industry and Competition (DTIC) / Semafor