Trump’s tariff hike on SA goods is politically motivated: Economist

Economist, Dawie Roodt, says US President Donald Trump’s decision to impose a 30% tariff on South African imports is driven more by political motives than sound economic reasoning.

South Africa is among the first group of countries to be targeted by the new US trade measures as the 90-day pause on reciprocal tariffs will come to end on Wednesday.

In a letter penned to President Cyril Ramaphosa, Trump defended the move saying the 30% is far less than what is needed to correct the trade deficit disparity between the two countries.

The American President also issued a stern warning to Pretoria that any attempt to respond with reciprocal tariffs would result in even steeper penalties from Washington.

On Monday, Trump said countries that support BRICS policies will be hit with an extra 10% tariff.

Roodt has slammed the South African government for being reactionary.

He has put the blame solely on the SA government, saying they had ample time to negotiate with the United States.

“This was expected, we all knew that this was coming so why haven’t we seen our political leaders trying to come to some sort of agreement with Trump,” says Roodt.

The economist says the political relationship between Washington and Pretoria will never be the same again, adding that Trump has his own agenda.

Roodt says the tariffs are proof of Trump’s efforts to put some financial limitations on how much South Africa can trade with Americans.

The economist added that SA must explore opportunities to go back to the negotiation table with Washington for a better deal.

President Cyril Ramaphosa says South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the US.

Ramaphosa has urged government trade negotiators and local businesses to speed up efforts to diversify, saying this will help strengthen both the country’s economy and its position in global supply chains.

“South Africa has continued to engage the United States, most recently at a meeting held on the side-lines of the US-Africa Summit on 23 June 2025 in Luanda.”

“It was at this meeting where South Africa learned of a template with which the US wishes to engage sub-Saharan Africa on matters of trade.”

Meanwhile, Agriculture Minister, John Steenhuisen, says the tariff will have a devastating impact on the country’s agricultural and textile sectors.

He says the move by the US signals the potential end of the African Growth and Opportunity Act (AGOA), which gives SA duty free access to the US.

The Minister added that SA has the remaining few days to try and negotiate a way forward to prevent the hike that is expected to come into effect on August 1.

Among some of the countries affected include Laos with a 40% tariff, Myanmar 40%, Japan 25%, Malaysia 25% and Bangladesh 35%.