South Africa’s government is preparing a package to support companies vulnerable to US reciprocal tariffs as it continues talks with Washington on a new trade deal.
President Donald Trump on Thursday imposed a 30% tariff on imports from South Africa — the highest in sub-Saharan Africa — among a slew of levies that are being introduced in his revised global plan.
South Africa noted the duties “with concern,” President Cyril Ramaphosa said in a statement.
The “government is finalizing a package to support companies that are vulnerable to the reciprocal tariffs,” Ramaphosa said.
“The package consists of a number of measures to assist companies, producers and workers affected by the tariffs on South African exports to the US.”
The tariff on South African imports to the US highlights a deterioration in relations between the two nations since Trump came to power in January.
The US president accused South Africa’s government of permitting a genocide against White farmers, allowed members of the ethnic Afrikaner minority to apply for refugee status and expelled the nation’s ambassador.
In May, Trump assailed Ramaphosa in a televised meeting at the White House, repeating the genocide allegations.
The Trump administration has also repeatedly clashed with leaders of the BRICS economic bloc, of which South Africa is a prominent member. The group also includes Brazil, Russia, India and China.
South Africa will continue to engage the US on a new trade accord and has submitted a “framework deal” that aims to enhance both trade and investment relations, Ramaphosa said in his statement.
“All channels of communication remain open to engage with the US and our negotiators are ready pending invitation from the US,” the president said.
A 30% tariff could put more than 100,000 jobs in South Africa’s auto and agricultural sectors at risk, central bank Governor Lesetja Kganyago warned last month.
That would be a big knock to a country that already has one of the world’s highest unemployment rates and tepid economic growth.
Details of the proposed support package will be announced in due course.
“We’re going to go all out to support our companies to seek out other markets,” Ramaphosa said.
“Our objective is to save jobs.”
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