United States tariffs on South Africa could cost the country up to 100 000 jobs, according to the governor of the SA Reserve Bank, Lesetja Kganyago.
News24 said Kganyago told Radio 702 that if a 30% tariff is implemented as threatened from 1 August, it could cause significant damage to industries such as the agricultural and motor vehicle sectors.
“The impact in agriculture could actually be quite devastating because agriculture employs a lot of low-skilled workers, and here the impact is on citrus fruit, table grapes and wines,” Kganyago said.
He said it was “very concerning” that South African car exports to the US had slumped by more than 80% following the import tariffs imposed on cars by the Trump administration in April.
“If we do not find alternative measures, the impact on jobs could be around 100,000, so that is what we actually face,” the central bank governor said.
South Africa has one of the highest unemployment rates in the world, with the official rate sitting at 32.9% in the first quarter of this year, and the expanded definition at 43.1%, News24 said.
Farmer groups have warned of the adverse impact of tariffs on producers of citrus, macadamia nuts, grapes, wine, fruit juices and ostrich leather.
In the citrus sector alone the tariffs have put 35,000 jobs in jeopardy and threaten to devastate towns such as Citrusdal in the Western Cape that are heavily dependent on exports to the US.
