South African producers and manufacturers face multiple tariffs in terms of recent announcements by the United States president, Donald Trump.
The 90-day suspension of the 31% import tariffs announced on 2 April does not mean that all is well, at least for the moment. Other tariffs remain in force.
They are:
- The general baseline tariff of 10% that applies to all imports into America from all nations, except Russia. That nullifies the duty-free benefits that South African citrus, wines, nuts and other agricultural products have enjoyed under the African Growth and Opportunities Act (AGOA). The 10% tariff, effective from 5 April 2025, is in addition to any other duties and tariffs.
- A tariff of 25% on motor vehicles and parts. That nullifies the AGOA benefits that have led to growth and job creation by South African motor manufacturers supplying the US market. The tariff is effective from 3 March 2025.
- A 25% tariff on imports of steel and aluminium and their derivatives into the US. That tariff is effective from 12 March 2025, again nullifying South Africa’s AGOA duty-free advantages.
The additional 31% “reciprocal” tariff on all imports from South Africa was announced on 2 April, but has been suspended for 90 days from 9 April to allow countries to try to negotiate bilateral trade deals with the US.
The White House has announced exemptions for gold, steel and other products from the “reciprocal” tariffs, Moneyweb has reported.
That means that, if the reciprocal tariffs do come into effect after 90 days, South Africa’s steel, aluminium, gold, copper and base and precious metals won’t be subject to additional US tariffs on top of other high tariffs already in place.
