South African President Cyril Ramaphosa says he remains optimistic about securing a trade deal with the United States, despite a looming 30% tariff on South African exports announced by U.S. President Donald Trump.
The tariff, set to take effect on August 7, poses a major threat to South Africa’s economy, with the U.S. being its second-largest trading partner. Key sectors such as agriculture and automotive manufacturing are expected to bear the brunt of the new levy, likely leading to widespread job losses in a country already grappling with an unemployment rate exceeding 32%.
Speaking on Friday, Ramaphosa confirmed that “intensive negotiations” are underway with Washington and that South Africa has tabled a proposal aimed at achieving a “mutually beneficial” agreement.
“We export vehicles, steel, aluminium, and citrus,” the president noted. “We must engage constructively to reach a settlement. There is still a window open, and we’re hopeful we can resolve this.”
In anticipation of the tariffs, the South African Reserve Bank has downgraded the country’s annual growth forecast from 1.2% to 1%. Meanwhile, the government says it is working on a support package for businesses that will be most affected by the trade barriers.
