President Cyril Ramaphosa has reaffirmed South Africa’s commitment to strengthening its trade resilience in the face of escalating international trade tensions.
Ramaphosa emphasised the urgency of diversifying trade partnerships and protecting key economic sectors.
Jolted
The global economy was jolted earlier this month when the United States announced a 10% universal tariff on all imports, effective 5 April.
Countries with significant trade imbalances with the U.S. were subsequently hit with additional tariffs ranging from 11% to 50%, with South Africa facing a 31% tariff.
Although President Trump unexpectedly paused the higher tariffs for 90 days starting on 9 April, the initial 10% tariff remains in force.
“South Africa, like many nations, is vulnerable to global trade disruptions,” said President Cyril Ramaphosa.
“We are actively pursuing measures to improve the resilience of our import and export systems, including expanding and deepening our trade relationships with new and existing partners across Africa, Asia, and Latin America.”
While core mineral exports, such as gold and platinum, remain exempt from the new tariffs, labour-intensive industries such as agriculture and automotive manufacturing are poised to face significant challenges.
Combined, these two sectors employ over one million South Africans.
Further uncertainty
The likely suspension of the African Growth and Opportunity Act (AGOA) for South Africa has added further uncertainty to the trade outlook.
AGOA has historically allowed duty-free access for a wide range of South African products to the US market.
The president stressed that the government is engaging with industry stakeholders and global partners to mitigate the impact of these developments, while advancing long-term goals for economic self-reliance and sustainability.
In his Monday, 14 April ‘From the desk of the President’ letter, Cyril Ramaphosa said:
Dear Fellow South African,
Trade between nations is a vital part of economic progress.
That is why, as part of our G20 Presidency, South Africa is promoting a trade agenda in which G20 members commit to measures to promote expanded, more inclusive and more sustainable value chains.
I recently came across an inspiring story of a farmer from Elukwatini in Mpumalanga that highlights how deepening G20 trade can support the growth of local industry. In February, Bongani Thobela took part in the world’s largest fresh produce trade fair in Germany, a G20 member and the third largest market for South African exports. There he was able to meet potential buyers and has since secured an export license and sent samples of his produce to Germany and China.
He was part of an initiative by the Department of Trade, Industry and Competition to support local producers to attend international trade fairs and exhibitions to expose them to international markets. This reflects our conviction that greater exports of a more diverse variety of goods and service are essential for the growth of our economy and the creation of more jobs.
We are committed to measures that support industrial development and bolster the value of our exports. At the same time, we are pursuing a trade policy that uses international trade agreements to secure fairer terms, promote market access and facilitate expansion into new markets.
Developing economies such as ours are vulnerable to volatility in international trade. This is particularly the case in the face of unilateral actions and coercive measures that undermine multilateral agreements and the global rules-based trading system.
We are therefore working in different ways to make our domestic industries more resilient.
To bolster the value of our exports we are strengthening the regulatory regime. For example, last month we signed the Plant Health Act into law. This will improve domestic biosecurity and ensure there is greater alignment with international export requirements.
We are intensifying our efforts to diversify destinations for South African goods, products and services.
Last year marked a number of ‘firsts’ for South African agricultural exports. We gained access to the Thailand market for apples for the first time in 16 years and exported our first container of avocados to Japan. This month we also gained market access for South African table grapes to the Philippines.
We are deepening relations with countries and regions with which we have regional and bilateral trade agreements that provide preferential trade terms. These include the Southern African Customs Union and the Southern African Development Community Free Trade Area.
We are working to make effective use of the African Continental Free Trade Area (AfCFTA). Last year, we commenced trading under the AfCFTA. A shipment of ‘Made in SA’ consumer goods, copper, cement, electrical and pharmaceutical goods and fresh produce left the port of Durban for markets elsewhere on the continent.
At last month’s European Union-South Africa Summit in Cape Town we signed a trade and investment package worth around R90 billion. This package will support the export of more SA-made products into the EU.
We are increasing investment in domestic industries that contribute to exports. The 2025 Budget allocates increased funding to boost manufacturing and agro-processing, as well as for incentive programmes that strengthen local value chains and open access to key international markets.
As we undertake all these measures, South Africa will continue to advocate for a level playing field in global trade.
Trade must remain free, predictable and governed by a rules-based system. This is particularly critical for developing economies, many of which remain locked into the lower end of global value chains.
South Africa endorses the reform process underway within the World Trade Organisation (WTO) that seeks to address deficiencies in the global trade regime that work against developing economies.
South Africa remains committed to maintaining favourable relations with existing trade partners and to forging new trade relationships.
As Government, business and labour, we will continue to deepen our collaboration as we navigate a global trade environment that has become increasingly complex.
Our ultimate goal is to secure favourable trade terms that advance our national interest, drive inclusive growth and create jobs for the South African people.
Should Cyril Ramaphosa be a worried man?
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