{"id":393112,"date":"2025-09-02T23:32:16","date_gmt":"2025-09-02T23:32:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/393112\/"},"modified":"2025-09-02T23:32:16","modified_gmt":"2025-09-02T23:32:16","slug":"trumps-tariffs-are-squeezing-south-african-exporters-and-the-pressure-is-mounting","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/393112\/","title":{"rendered":"Trump\u2019s tariffs are squeezing South African exporters, and the pressure is mounting"},"content":{"rendered":"<p>\n        In August, the United States imposed a 30% tariff on South African exports, the highest rate in Sub-Saharan Africa. The move, first announced by President Donald Trump in April as part of his \u201cLiberation Day\u201d proclamation, has shaken confidence and could cost tens of thousands of jobs in industries like agriculture and carmaking.\n    <\/p>\n<p>                    <img width=\"790\" height=\"790\" alt=\"Despite new US tariffs, imports from Africa jumped 24% year-on-year to $23.4 billion in the first half of 2025 \u2014 with South Africa leading at $9.5 billion, up 52% from H1 2024. Source: U.S. Census Bureau \/ Bureau of Economic Analysis, Intelpoint.\" title=\"Despite new US tariffs, imports from Africa jumped 24% year-on-year to $23.4 billion in the first half of 2025 \u2014 with South Africa leading at $9.5 billion, up 52% from H1 2024. Source: U.S. Census Bureau \/ Bureau of Economic Analysis, Intelpoint.\" class=\"image lazyloaded imgWithMetaData\" src=\"data:image\/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'790'%20height%3D'790'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E\" data-original=\"https:\/\/ocdn.eu\/pulscms-transforms\/1\/kq_ktkpTURBXy8wOTdmOTY1OGRhOTliMTc2MGU1YWU0NjAzMDdkYTA5My5qcGeRlQLNAxbNAxbCww\" fetchpriority=\"low\" decoding=\"async\" loading=\"lazy\"\/> <\/p>\n<p>\n        South Africa exports nearly 7.5% of its goods to the US, making Washington its third-largest trading partner after the EU and China, according to the <a href=\"https:\/\/www.ft.com\/content\/7fc9a9a9-bdcb-498f-872f-0b3e7d82a88f?utm_source=chatgpt.com\" id=\"e4cd8308-e5f1-4372-bbc9-3c6c1ba5789d\" target=\"_blank\" rel=\"noopener\">Financial Times<\/a>. Yet South Africa accounts for just 0.25% of total US imports \u2014 a figure that government officials argue makes the tariff \u201cinscrutable\u201d and unjustified.\n    <\/p>\n<p>        PMI Returns to Contraction<\/p>\n<ul class=\"list\">\n<li>New sales orders collapsed by 8.5 points to 47.4, as firms cited tariffs hurting exports and softening demand.<\/li>\n<li>The business activity index fell to 45.8, partly due to increased competition from cheaper imports.<\/li>\n<li>Even supplier delivery times shortened, but only because orders were declining, not because logistics had improved.<\/li>\n<\/ul>\n<p>\n        Economists estimate the tariff could shave 0.2 percentage points off South Africa\u2019s GDP growth this year, depending on the country\u2019s ability to redirect exports to alternative markets.\n    <\/p>\n<p>        Corporate Warnings<\/p>\n<p>\n        The fallout is already visible in corporate earnings. Bell Equipment, a JSE-listed industrial manufacturer, warned shareholders that earnings for the first half of 2025 will fall by between 22% and 32%, to as low as 220 cents per share, compared with 322 cents last year.\n    <\/p>\n<p>\n        The company said the \u201cexpected decrease in earnings is primarily due to a global slowdown in demand and the impact of the USA tariff situation,\u201d adding that while the effect in the first half was limited, the second half would be \u201cmore significant.\u201d\n    <\/p>\n<p>                    <img width=\"282\" height=\"179\" alt=\"Bell Equipment has warned shareholders of a 22\u201332% drop in first-half earnings for 2025, citing weaker global demand and the impact of US tariffs on exports.\" title=\"Bell Equipment has warned shareholders of a 22\u201332% drop in first-half earnings for 2025, citing weaker global demand and the impact of US tariffs on exports.\" class=\"image lazyloaded imgWithMetaData\" src=\"data:image\/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'282'%20height%3D'179'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E\" data-original=\"https:\/\/ocdn.eu\/pulscms-transforms\/1\/idPktkpTURBXy82MWQxNzk3Y2ZhNDNmYjQ0NTdhYzkzMzg5MjUxZDhjZC5wbmeRlQLNARrMs8LD\" fetchpriority=\"low\" decoding=\"async\" loading=\"lazy\"\/> <\/p>\n<p>\n        Other export-facing sectors \u2014 from mining to autos \u2014 are also bracing for losses. Carmakers like BMW and Ford SA, which assemble in South Africa for US export markets, warn that a 30% levy could erode competitiveness overnight. Wine producers and fruit exporters have also flagged risks to counter-seasonal shipments that traditionally plug gaps in the US market.\n    <\/p>\n<p>        South Africa Pushes Back<\/p>\n<p>\n        Pretoria has been quick to stress that its exports do not compete with US industry and, in many cases, support it.\n    <\/p>\n<p>\n        Officials highlight that South African agriculture shipments are counter-seasonal, filling supply gaps rather than displacing American farmers. Mineral and manufacturing exports also serve as crucial inputs into US value chains, while more than 600 American companies operating in South Africa contribute to local industrial growth and jobs.\n    <\/p>\n<p>\n        \u201cSouth Africa is not just a trading partner \u2014 we are a major investor in the United States, with our companies sustaining American jobs,\u201d the Department of Trade and Industry said. \u201cOur goal is to preserve and grow these mutually beneficial relationships.\u201d\n    <\/p>\n<p>        What Comes Next<\/p>\n<p>\n        The uncertainty is already reshaping trade patterns. While <a href=\"https:\/\/africa.businessinsider.com\/local\/markets\/africas-richest-country-to-boost-continental-trade-ties-after-us-30-tariff-hit\/lj3y9l2?utm_source=chatgpt.com\" id=\"8beee526-7a8f-42c8-a684-3bdb38dc1ea5\" target=\"_blank\" rel=\"noopener\">35% of South African exports remain exempt<\/a> from tariffs \u2014 including copper, pharmaceuticals, semiconductors, stainless steel scrap, and certain energy products \u2014 the shift marks a departure from the low-tariff environment that has underpinned global trade for decades.\n    <\/p>\n<p>\n        Analysts warn the true test will come in the second half of 2025, when corporate earnings and employment figures capture the full impact. With logistics bottlenecks at Transnet already straining mining and manufacturing exports, the tariff shock could deepen the country\u2019s economic woes.\n    <\/p>\n<p>\n        For now, policymakers are keeping the door open for negotiations. \u201cWe will continue to engage the US with a view to conclude a deal that advances the interests of both countries,\u201d South Africa\u2019s trade department said.\n    <\/p>\n","protected":false},"excerpt":{"rendered":"In August, the United States imposed a 30% tariff on South African exports, the highest rate in Sub-Saharan&hellip;\n","protected":false},"author":2,"featured_media":393113,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-393112","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115137317916483829","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/393112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=393112"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/393112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/393113"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=393112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=393112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=393112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}