Ramaphosa responds to 30% tariff on South Africa

President Cyril Ramaphosa has reacted to United States President Donald Trump’s decision to impose a 30% trade tariff on South African exports, challenging the interpretation of trade imbalances between the countries.

Trump announced late on Monday (7 July) that South Africa would be hit with the tariff from 1 August, based on the imbalanced trade between the two countries.

“We have decided to move forward with you (South Africa), but only with more balanced and fair trade,” said Trump.

“We have had years to discuss our Trading Relationship with South Africa, and have concluded that we must move away from these long-term, and very persistent, trade deficits engendered by South Africa’s Tariff, Non-Tariff, Policies and Trade Barriers.”

The announcement of the looming 30% tariff on South Africa was made on social media platforms, but also through a letter addressed to Ramaphosa himself.

Ramaphosa noted the letter, saying that the country was one of many that received such communication on Monday.

However, he contested the 30% rate, saying it was reached using a “particular interpretation” of the balance of trade between the US and South Africa not shared by the latter.

The 30% tariff is the same as what was announced in Trump’s original “Liberation Day” speech in April, and it appears to be based on the same rudimentary calculation that determined all “reciprocal” tariffs at the time.

In April, Trump announced a 30% tariff on South Africa, which was deemed a discounted “reciprocal tariff” after he claimed that South Africa imposes tariffs of 60% on all American goods, directly and indirectly.

However, the 60% rate calculation is based on the trade deficit between the US and South Africa, not any trade or tariff policy.

As a smaller emerging market economy, South Africa exports far more goods to America, a developed and consumer-led economy, than it imports.

The US imported $14.8 billion in goods from South Africa, while only exporting $5.8 billion to the country. This gave it an ‘imbalance’ of -60.6% – hence the tariff.

Ramaphosa said this is not correct.

“South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data,” he said.

“In our interpretation of the available trade data, the average tariff on imported goods entering South Africa stands at 7.6%.”

Importantly, Ramaphosa said that 56% of goods enter South Africa at the 0% ‘most favoured nation tariff’, with 77% of US goods entering the South African market at that level.

Talks with the United States ongoing

Ramaphosa said the “contested interpretation” forms part of the issues under consideration by the negotiating teams from South Africa and the United States.

“South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States,” he said.

“We welcome the commitment by the US government that the 30% tariff is subject to modification after our negotiations with the United States.”

South Africa has continued to engage the United States, most recently at a meeting held on the sidelines of the US-Africa Summit on 23 June 2025 in Luanda.

Ramaphosa said that it was at this meeting where South Africa learned of the template the US wants to use to engage sub-Saharan Africa on matters of trade.

While the South African negotiating team awaits this template, Ramaphosa has instructed the team to urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on 20 May 2025.

This Framework deal addresses the issues initially raised by the US, including South Africa’s supposed trade surplus, unfair trade practices and lack of reciprocity from the US.

“We urge government trade negotiations teams and South African companies to accelerate their diversification efforts in order to promote better resilience in both global supply chains and the South African economy,” the president said.