Tau explained that not all exports to the US are subject to the same tariffs and some are not subject to any.
South Africa is starting to feel the impact of the US tariff, especially for automotive exports that decreased by 79%, while the country’s exports to the US between January and September last year decreased by 11%.
US president Donald Trump instituted a tariff of 30% on goods from South Africa entering the US on 1 August last year. The information was part of a parliamentary answer from minister of trade, industry and competition, Parks Tau when MP Wesley Douglas asked him if his department has already determined the exact impact of the US trade tariffs on the exports and local industries.
Douglas also wanted to know if there was an update on the department’s efforts to find new high-growth markets and if progress was made in the process of developing the country’s response the US draft Agreement on Reciprocal Tariffs.
Tau said in parliament in October that the 30% tariff reimposed by the US may shave off 0.2% of South Africa’s economic growth and that his department and partners made significant progress in opening up vast new markets.
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Two kinds of US tariffs for SA
Tau said in his reply that South Africa’s exports to the US face two kinds of tariffs
- the so-called “reciprocal tariffs” that affects less 30% of SA exports to the US; and
- Section 232 tariffs on automotive and auto components, steel and aluminium, pharmaceutical products and wood and wood products that affect around 36% of South Africa’s exports to the US. At least 35% of South African exports to the US remain exempt from the reciprocal tariffs. The exempt products are semiconductors, lumber articles, certain critical minerals, stainless steel scrap and energy products.
The minister points out that on 14 November, Trump also issued an executive order exempting some agricultural products from the reciprocal tariffs. These included coffee, tea, bananas, oranges, tomatoes, beef, tropical fruits, fruit juices, some fertilisers and food products. These exemptions further reduce the impact of the reciprocal tariffs on SA exports.
From January to September 2025 South Africa’s exports to the US amounted to R108 billion compared to R120 billion for January to September 2024, a decline of 11%. Tau said the decline was more prominent in vehicles, which decreased by 79%, while mineral products decreased by 27%, machinery and mechanical appliances by 24% and raw hides and skins, leather, fur skins and fur articles decreased by 36%.
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Some exports increased to other countries
Tau added that in the case of products where the US exports decreased they showed a positive growth when exported to other countries, indicating a positive impact of diversification efforts, with the exception of mineral products that decreased by 4%.
For example, he said, the exports of vehicles to the world over the same period increased from R110 billion to R122 billion, an increase of 10% and machinery and mechanical appliances maintained the same level on exports to the world at R107 billion, while raw hides and skins decreased by 7% from R3.3 billion to R3.1 billion.
“The decrease in exports is not unique to South Africa, as there has been a general decrease in imports of goods and services from the world to the US due to the imposition of the unilateral tariffs. This decrease in imports from the world to the US coincides with commodities where South Africa registered a significant decline in its exports.”
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Economic response package after US tariffs
Tau pointed out that the dtic has been working with other departments to finalise an economic response package to support affected sectors to preserve productive capacity and jobs.
“We have also been strengthening trade and investment partnerships with various trade partners. These efforts are bearing fruit, targeting markets across Africa, as well as in Asia, Europe, the Middle East and the Americas.
“In addition, we also made significant progress in opening up vast new markets, like China and Thailand, securing vital protocols for products like citrus and others. With China alone being a $200 billion market, we are confidently expanding our reach and creating new opportunities for our agricultural producers.
“We are also making significant inroads into new, high-growth markets across Asia and the Middle East, including the UAE, Qatar and Saudi Arabia, as well as with ASEAN and Turkiye.”
Tau said government consulted with various stakeholders including business and labour on the draft Agreement on Reciprocal Tariffs (ART). “South Africa’s attributions on the Draft ART text have been shared with the US and discussions are ongoing. Government is also in consultation with NEDLAC and SACU countries to prepare a tariff offer to the US.”
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US consumers starting to feel the pinch of US tariffs
Meanwhile, economist Julian Hinz, one of the authors of a study from the Kiel Institute for the World Economy that looked at how much more US consumers are paying for imported goods due to the tariffs, described the tariffs as an “own goal”.
“The claim that foreign countries pay these tariffs is a myth. The data shows the opposite: Americans are footing the bill. There is no such thing as foreigners transferring wealth to the US in the form of tariffs.”
The research team explored more than 25 million shipment records totalling over $4 trillion in US imports and found that customs revenue in 2025 went up by $200 billion, but most of that was paid by US consumers.
The team also specifically studied the tariffs on Brazil and India in August 2025 and again discovered that “the data shows that foreign exporters did not lower their prices to offset the additional tariffs”.
“We compared Indian exports to the US with shipments to Europe and Canada and identified a clear pattern. Both export value and volume to the US dropped sharply, by up to 24%. But unit prices, the prices Indian exporters charged, remained unchanged. They shipped less, not cheaper.”
Turning to the “global impact” of the findings, the Kiel Institute said their findings showed that US companies will be “confronted with shrinking margins and consumers with higher prices in the long run. The tariffs will also push foreign countries to find new export markets. Tariffs ultimately disadvantage everyone,” Hinz said in the piece by the organisation Occupy Democrats.