As Washington imposes steep tariffs, industry voices warn of a blow to economic growth. The poultry sector, responsible for two-thirds of SA’s meat supply, has been left out of talks and now faces a perilous future.
The United States has officially announced a 30% tariff on goods imported from South Africa, set to take effect on 7 August. This follows the rejection of two proposals from Pretoria aimed at avoiding the tariffs, with Washington citing a lack of ambition in South Africa’s offers.
Newzroom Afrika spoke to FairPlay founder Francois Baird to unpack the implications of this move for exporters and the broader economy. When asked about his concern on the economic impact, Baird did not mince his words, “South African farmers, workers and producers are now paying the penalty for their government alienating the biggest economy in the world over the last 15 years.”
He noted that other countries, such as Eswatini, had negotiated more strategically with the United States and avoided such measures. “What’s ahead for us is a lot of pain because unless South Africa changes its political posture, its geo-political alignments, this is only going to get worse. There’s still talk of a 10% BRICS penalty that might be coming down the track… it’s time to panic and avoid the Christmas rush,” Baird continued.
He warned that the Department of Trade, Industry and Competition (DTIC) has not been engaging with the poultry industry despite its importance. Baird noted that two thirds of all meat consumed in South Africa is poultry, and poultry consumes most of the soya and the grain produced in South Africa.
“The poultry industry is a vital strategic asset to South Africa; the South African government should do everything in its power to assist the sector in this particularly difficult period, especially if it plans to make concessions without even consulting the industry.”
Baird urged government to prioritise the poultry sector in its negotiations: “The South African government should take the poultry industry in its confidence and work with them. It is unreasonable to try and force the poultry industry to give more because there is no more to give. It’s been sacrificed every time in past negotiations for the sake of other industries in South Africa.”
The DTIC recently announced an export help desk, intended to assist South African exporters impacted by the tariffs. However, Baird was skeptical when asked, “Strategically the government should look at these industries that are vital to South Africa’s future health and economic well-being. If you look at poultry, the sector employs over 100,000 directly and indirectly – the DTIC would not be doing the country a favour if it ignores the poultry industry, or even worse, if it sacrifices the poultry industry for the sake of trying to get some deal done in a panic at the last moment.”
The coming weeks will test South Africa’s ability to balance diplomacy with economic survival. Without urgent, strategic action, the 30% tariff could deepen the strain on key industries, with poultry standing as the first major casualty.
Whether government steps up to protect these sectors or sacrifices them – along with the rural jobs that they sustain – in a rush to strike deals, remains to be seen.
