• Auto and agriculture sectors face steep losses under new U.S. trade measures
• U.S. to apply 30% tariffs on South African imports starting August 1, 2025
• Unemployment already near 43% when including discouraged job seekers

The South African Reserve Bank (SARB) has warned that new tariffs imposed by the United States could result in the loss of around 100,000 jobs, especially in the agriculture and automotive sectors. The warning came from SARB Governor Lesetja Kganyago during a radio interview on July 16.

The impact of the new U.S. tariffs could be quite significant on specific sectors, Kganyago told Radio 702. According to him, the most affected sectors are agriculture and automotive, which already saw exports to the U.S. drop by more than 80% in April and May.

He added that the agricultural impact could be “quite devastating,” particularly because it employs a large number of low-skilled workers. He pointed to citrus, table grapes, and wine as the most at-risk export categories.

The Trump administration, which has enforced a 25% tariff on imported vehicles and auto parts from all countries since April 2, recently announced that it will also impose 30% tariffs on all South African imports starting August 1, 2025.

"If we do not find alternative measures the impact on jobs could be around 100,000, so that is what we actually face," Kganyago warned.

South Africa, the continent’s most industrialized economy, already faces an official unemployment rate of 32.9% as of Q1 2025, according to Stats SA. This figure only includes people actively looking for work. When accounting for discouraged job seekers, the real rate climbs to 43.1%.

The United States was South Africa’s second-largest trading partner in 2023, with bilateral trade totaling $17.64 billion, according to the International Trade Centre.