(Ecofin Agency) - • South Africa plans to shift industries towards higher-value production to limit U.S. tariff effects
• The U.S. will impose tariffs up to 50% on imports from 185 countries, including South Africa, starting April 9
• South Africa aims to negotiate targeted exemptions and diversify export markets

South Africa is taking strategic steps to minimize the impact of new U.S. tariffs by shifting focus to industries that produce higher-value goods. This move, announced on April 4 in a joint statement by the country’s Ministries of International Relations and Trade, Industry, and Competition, comes in response to the U.S.’s protectionist measures that are set to take effect on April 9.

While the South African government has not disclosed the specific details of the plan, the move is expected to affect key sectors, including mining and agriculture. Products such as gold, platinum, diamonds, and citrus fruits make up a significant portion of South Africa's exports to the U.S. In 2023, platinum alone generated around $3.42 billion in exports, while citrus exports totaled $141 million, according to the Observatory of Economic Complexity (OEC).

In recent years, South Africa has worked to increase the local processing of raw materials in an effort to boost their value and drive economic growth. Key initiatives like the Mining Beneficiation Strategy, Industrial Development Zones (IDZs), the Mineral Charter, and the Hydrogen South Africa (HySA) program are central to this goal.

On April 2, U.S. President Donald Trump announced tariffs of up to 50% on imports from 185 countries, including 51 in Africa. South Africa faces a 30% tariff, according to the government. This decision threatens multiple sectors, though strategic products like chrome, manganese, and pharmaceuticals are exempted due to their importance to U.S. supply chains.

In response to this pressure, Pretoria plans to negotiate targeted exemptions and preferential quotas to ensure its industries continue to access the vital U.S. market. At the same time, the country is accelerating its efforts to diversify export markets, looking to Africa, Asia, Europe, the Middle East, and the Americas. South Africa aims to leverage the African Continental Free Trade Area (AfCFTA) to boost intra-African trade and reduce its reliance on external markets.

The South African government is also calling for the renegotiation of a more balanced and stable bilateral trade agreement with the U.S., emphasizing the urgency of establishing long-term commercial certainty. “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,” the ministries said in their statement.

The Disproportionate Impact

South Africa has criticized the U.S. tariffs as disproportionate, noting that the country accounted for only 0.4% of U.S. imports in 2024, while U.S. goods made up 7.45% of South Africa’s exports. The U.S. administration’s recent actions, including reducing aid to South Africa over disagreements on land reform and its position on Israel at the International Court of Justice, have worsened diplomatic relations. This culminated in March with the expulsion of South Africa's ambassador to the U.S., Ebrahim Rasool, after he made critical comments about President Trump.