Written by Lisa Murimi
The South African government has unveiled a series of support measures aimed at shielding local industries from the economic fallout of new 30% tariffs imposed by the United States, set to take effect this week.
At a press briefing on Monday, South Africa’s trade and foreign affairs ministers outlined a multifaceted response plan, including financial aid, policy exemptions, and international trade facilitation, aimed at minimizing job losses and keeping industries afloat.
Key among the measures is a forthcoming “block exemption” under the Competition Act, which will temporarily allow rival companies to collaborate and coordinate efforts without breaching anti-competition laws. Officials said the exemption will be published by the end of this week.
Additionally, the government is rolling out a support programme featuring a working capital facility, a plant and equipment facility, and other financial tools to help affected businesses cope. The Unemployment Insurance Fund (UIF) will also be leveraged to cushion workers from job losses, particularly in agriculture and car manufacturing, sectors expected to be hardest hit.
Trade officials warned the tariff could lead to tens of thousands of job losses, as the U.S. under President Donald Trump continues reshaping global trade rules to benefit American industries.
South Africa had spent months trying to negotiate an alternative, offering to purchase U.S. liquefied natural gas and invest $3.3 billion in American industries under a proposed “framework deal.” Despite a last-minute effort to improve the offer, Washington rejected the deal.
Responding to speculation that the failure to secure a lower tariff stemmed from U.S. opposition to South Africa’s domestic policies, such as affirmative action and its genocide case against Israel, Foreign Minister Ronald Lamola dismissed the claims, insisting the dispute should remain rooted in economic terms.
“We pose no trade threat to the U.S. economy or its national security,” Lamola stated. “South African exports often support the U.S. industrial base and do not compete directly with American products.”
An export support desk will also be established to help South African firms explore new international markets, with assistance from embassies and trade attachés. A more detailed set of measures is expected to be finalized during a cabinet meeting on Wednesday.
Despite the setback, Pretoria reaffirmed its commitment to engaging with the U.S. within the framework of its initial trade proposal.
