South African Rand Sinks Most Since 2011

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U.S. Imposes Reciprocal Tariffs Globally; South Africa To Seek Clarity, New Trade Deal

Photographer: Jason Alden/Bloomberg via Getty Images
Published 20 days ago
, Sub-Editor

President Donald Trump announced reciprocal tariffs for over 180 countries on Wednesday, including South Africa, Nigeria, and Angola, amongst others, in a bid to rectify trade practices that have reportedly contributed to the country’s trade deficits.

A 30% tariff has been imposed on South Africa in relation to imports into the United States (U.S.). This is following an announcement by President Donald Trump, on April 2, 2025. The U.S. plans to impose a tariff of 10% on all imports into the country with higher percentages mentioned for specific trading partners.    

According to the Executive Order, trade deficits have led to the hollowing out of the country’s manufacturing base and inhibited its ability to scale advanced domestic manufacturing capacity. It goes on to say that this has undermined critical supply chains in the U.S. and rendered its defense-industrial base dependent on foreign adversaries.

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The South African Presidency noted the new tariffs, in a statement, saying: “Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity”.

“The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S., as an essential step to secure long-term trade certainty.”

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Following the announcement of the tariffs, Investec Chief Economist, Annabel Bishop noted in a statement that the reaction from financial markets was swift, adding that there might be “higher inflation expectations (and fewer interest rate cuts) for the U.S. as a consequence of the marked increase of the cost of living on the imposition of the tariffs on imported goods into the U.S.”.

She also pointed out that South Africa is expected to see lower gross domestic product (GDP) growth in 2025 at 1.3% year-on-year from 1.8% year-on-year, referring to an economic growth note from March 7 and the macroeconomic outlook from March 27. This would be as a consequence of the “escalation in the trade war and the loss of AGOA [the African Growth and Opportunity Act], among other noted factors”.

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Relations between South Africa and the U.S., in particular, have been strained recently for several reasons, most notably, the cutting of funding to the country and an offer from the latter to resettle White South African farmers and their families in February following utterances of a ‘white genocide’ in the country–allegations which have been denied by South Africa–and the suspension of USAID funding, globally, by the U.S, which has reportedly impacted several organizations in South Africa.

More recently, in March, the U.S. expelled South Africa’s ambassador to the country, Ebrahim Rasool, after remarks he made about President Trump. In the same month, Trump nominated Brent Bozell III, a conservative media commentator, to become the next U.S. ambassador to South Africa, stating, “Brent brings fearless tenacity, extraordinary experience, and vast knowledge to a nation that desperately needs it”.

In relation to the new tariffs, South Africa’s Trade Minister, Parks Tau reportedly stated, at the Gauteng Investment Conference on Thursday in Johannesburg, that the country would need clarity from the U.S. as to how they arrived at the 30% figure and how they would want to engage.

According to reports, South Africa currently imposes an averaged 7.6% tariff on products from the U.S.

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Other African countries facing higher percentages than the standard 10% include Angola (32%), Botswana (37%), Côte d’Ivoire (21%), Lesotho (50%), Mauritius (40%), Namibia (21%), Nigeria (14%), Zambia (17%) and Zimbabwe (18%), to name a few.

The White House confirmed that the 10% tariffs would take effect from April 5 and reciprocal levies on April 9.

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