South African manufacturers have started finding new export markets as the Trump administration’s tariffs threaten to price them out of the United States.
Nedbank’s head of manufacturing, Amith Singh, explained to News24 the bank’s experience with its exporting clients.
Singh said South African businesses have shown agility in diverting their products away from the US. Metal and steel products headed the list, followed by wood, paper and board, machinery, plastics and chemicals.
“Diversification was thrown around quite aggressively amidst the announcement of tariffs,” he said.
“There’s been diversification in Africa, within Asia, but that there’s no specific node that this has migrated to, which is absolutely fascinating.”
The moves have followed the first tariff announcements in April by US President Donald Trump, who said that South Africa would face a 30% tariff on all US-bound goods, except for 25% tariffs on vehicles and auto components. In June, the US also announced a separate 50% tariff for imports of steel and aluminium.
While a baseline 10% tariff remained, the 30% general tariffs were suspended for 90 days. They came into effect earlier this month.
African opportunities were identified by Standard Bank’s Luthando Vuba, head of international trade with business and commercial banking.
He said African countries held significant potential for the South African auto industry, which could benefit from duty-free status as part of the African Continental Free Trade Areas (AfCFTA).
He pointed to Morocco, and greenfield investment opportunities for locally assembled manufacturing in Ghana, Rwanda, Kenya and Nigeria.
“There is also an opportunity for businesses in the value chain for spare parts and the secondary market. About 60% of vehicles in Africa are second-hand,” Vuba said.
