Tariffs on S Africa 8-17-25

Effective August 8, 2025, the United States has imposed a 30% reciprocal tariff on most imports from South Africa. This tariff was implemented as part of a broader set of "reciprocal" tariffs imposed by the US on several countries, based on the rationale of addressing persistent US trade deficits. 

It is important to note that specific sectoral tariffs also apply:

·       Automobiles and automobile parts are subject to a 25% sectoral tariff rate.

·       Steel and aluminum imports face a 50% sectoral tariff rate.  

The implementation of these tariffs has sparked concerns about their impact on the South African economy and trade relations with the US. South African officials have indicated that these tariffs could jeopardize thousands of jobs in key sectors, including automotive and agriculture. Negotiations between the US and South Africa continue, but the future of these tariffs remains uncertain. 

The previous 10% baseline tariff which was in place prior to August 1, 2025 is no longer applicable to most South African goods. 

Transshipped goods (those fraudulently entered into the US with an incorrect country of origin to evade tariffs) face a 40% tariff and additional penalties. 

Effective August 7, 2025, the United States has imposed a 30% tariff on most imports from South Africa. 

This measure was confirmed via an Executive Order from the White House, coming after a period of intense negotiations and an initial 10% baseline tariff implemented earlier in the year. 

In addition to the 30% tariff, specific sectors in South Africa face further tariffs:

·       Automotive and components: 25% sectoral tariff.

·       Steel and aluminum: 50% sectoral tariff. 

This new tariff regime effectively supersedes any benefits previously enjoyed by South Africa under the African Growth and Opportunity Act (AGOA), according to Moneyweb. 

It's important to note:

·       Exemptions: Some exemptions that applied when reciprocal tariffs first took effect in April 2025 remain in place.

·       Transshipment: Goods found to be transshipped to avoid tariffs will face a 40% tariff and potential fraud penalties.

·       Future Developments: The situation is evolving, and businesses should stay informed of any further changes in US-South Africa trade relations. 

https://www.google.com/search?q=current+us+tariffs+on+s+african+imports+August+11+2025

In May 2025, the United States had a trade deficit of $132 million with South Africa. This was due to the US exporting $693 million worth of goods and services to South Africa while importing $825 million.

https://www.google.com/search?q=what+is+the+us+trade+deficit+with+s+africa+2025

Comments

The US 50% Tariffs on Steel, Aluminum and Copper will eliminate the US Deficits and should result in lower prices. There are no US Tariffs on Gold Imports.

Norb Leahy, Dunwoody GA Tea Party Leader