The United States has implemented a third round of global tariffs, hitting South Africa and dozens of other nations with a 12.5% levy over forced labour allegations. In response, South Africa is pursuing new legislation to reduce the rate, though key product exemptions offer some immediate relief to local exporters.
The third round of President Donald Trump’s global tariffs came into effect last week, as his 10% Round 2 tariffs expired.
Round 1 – the initial 30% “reciprocal” tariffs imposed in April 2025 – were declared illegal this year, and are being refunded.
Round 3 has two levels – 12.5% for South Africa and most other US trading partners, and 10% for a favoured few.
They are being applied to 60 countries in terms of Section 301 of America’s 1974 Trade Act, which authorises actions to address unfair foreign practices affecting US commerce. In this case, the unfair practice was alleged to be a failure to stop the importation of goods produced with forced labour.
All countries investigated were found guilty, including those that, like South Africa, made presentations in Washington to show they had not done what they were accused of.
Three questions are being asked – will Round 3 tariffs last longer than the previous attempts, might they be reduced, and how badly will the 12.5% tariffs affect South Africa?
On question 1, the first legal challenge was launched on the day the tariffs were announced, but US analysts believe that this this time they may be more difficult to dislodge. So they could be in effect for some time.
Might the tariffs be reduced? The South African government hopes so. It has signalled its intention to introduce legislation prohibiting the import of goods produced with forced labour. The objective is to have the tariffs reduced to 10% or less, or eliminated entirely.
On question 3, Engineering News points out that several products remain exempted, including platinum and other precious metals, various citrus products and other fruits, fruit juices and nuts. In addition, the 12.5% tariffs are also applied to most of South Africa’s agricultural competitors.
While the playing field remains elevated, at least it’s level.
