• The country is negotiating to ease the 30% tariffs imposed by Washington in August.

• The U.S. is South Africa’s second-largest trade partner with $17.6 billion in 2023 trade.

• The tariff hike and AGOA suspension threaten jobs, especially in the auto sector.

South Africa is exploring the possibility of a new trade deal to reduce the 30% tariffs imposed in early August on its exports to the United States, according to local media reports citing Trade Minister Parks Tau. The minister met with a U.S. delegation in September to discuss the issue.

[US]

Our engagements continue with stakeholders in the United States.

We met with the South Africa-US Retails Exporters to enhance our relationship and improve bilateral connection. #UNGA80 #RSAinUSA pic.twitter.com/7nQ1itBSAi

— Parks Tau (@TauParks) September 25, 2025

The higher tariffs have raised the cost of access to the U.S. market, South Africa’s second-largest trading partner, with bilateral trade valued at $17.64 billion in 2023. The agricultural and automotive sectors account for the largest volumes and are therefore the most affected by the measure.

These challenges come amid uncertainty following the suspension at the end of September of the African Growth and Opportunity Act (AGOA), a program that granted eligible African countries preferential access to the U.S. market. Its renewal remains subject to fresh negotiations.

According to ODI Global, low- and middle-income countries could lose up to $89 billion annually due to the combined effects of higher tariffs and cuts in U.S. development aid. In South Africa, the impact could be particularly severe: South African Reserve Bank Governor Lesetja Kganyago warned that the U.S. protectionist measure could result in nearly 100,000 job losses in the automotive industry.