00:00August 7th, 2025, Washington strikes hard.
00:04South African exports to the United States will now be taxed at 30 percent, with the
00:09exception of gold, platinum and other minerals, which account for more than a third of all
00:13exported products, but are vital to the American motor industry.
00:17Despite the hit caused by the tariffs on the country's economy, the IMF noted a resilience,
00:22estimating that South Africa's GDP grew by 1.1 percent in 2025.
00:27U.S. tariffs are expected to have only a 0.2 percent negative impact on the country's
00:32growth, according to the South African Stock Exchange.
00:35South Africa's exports to America account for no more than 7 percent of its total exports.
00:42And of that, about 4 percent is exempt from tariffs because it entails exports of key minerals.
00:50The enhancement of revenues to be accrued by exports of those minerals at much higher prices
00:56is likely to far outweigh the cost to the South African economy.
01:01Sectors who have been particularly impacted by these surcharges include agriculture and
01:06the auto manufacturing industry. Automotive exports to the United States fell from around
01:1125,000 units in 2024 to 6,530 in 2025. But South Africa has redirected them to the EU,
01:20the country's second largest trading partner. The EU has been a very large trading partner for South
01:28Africa, far more important than the United States. And one of the ironies of the tariff regime imposed
01:34by the Trump administration is that it has resulted in far closer trade relations between South Africa
01:41and the EU. Last week, China announced it will lift tariffs on imports from 53 African countries starting
01:48on May 1, a boon for South Africa, who views Beijing as its first commercial partner.
01:53While the IMF predicts a 1.4 percent growth this year for the rainbow nation,
01:58the uncertainty surrounding current U.S. policies have prompted experts to call for caution.
02:044.1 percent growth this year for the American birth- in 2020.
02:045.1 percent growth this year in 2020,
Comments