---
title: "Rand tanks as Trump poised to return to White House"
description: "This is the first indication of the impact a second Trump presidency will have on the South African economy, and it bodes ill."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "SEEING RED"
author: "Ed Stoddard"
author_url: "https://www.dailymaverick.co.za/author/ed-stoddard/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-06-rand-tanks-as-prospects-of-trump-comeback-rise/"
published: "2024-11-06T09:55:00"
updated: "2024-11-06T15:41:38"
lang: "en-ZA"
word_count: 273
---

# Rand tanks as Trump poised to return to White House

> This is the first indication of the impact a second Trump presidency will have on the South African economy, and it bodes ill.

By Ed Stoddard · Published 6 November 2024, 11:55 SAST · Updated 6 November 2024, 17:41 SAST

## Key points
- As the rand took a nosedive to R17.81 amid fears of a Trump comeback, South Africa's economic outlook darkened, with investors bracing for a potential tsunami of tariffs and uncertainty that could wash away thousands of jobs and the hope of thriving exports.
- The rand plummets to R17.81 against the dollar, reflecting a 3% loss amid rising fears of a Trump presidency.
- Global investor sentiment worsens, driven by geopolitical risks and potential US tariffs, signaling increased "risk aversion."
- South Africa's 10-year government bond yield spikes to 9.66%, highlighting deteriorating confidence in the economy.
- Uncertainty looms over the African Growth and Opportunity Act, threatening 13,000 South African jobs reliant on US market access.

## Content

The rand was on the ropes on Wednesday morning as America turned [blood-red](https://www.dailymaverick.co.za/article/2024-11-06-trump-claims-victory-in-presidential-contest/).

After starting the day at R17.40 to the dollar, the currency slid in Asian trade to hit R17.81, a loss of about 3%, as emerging markets across the board sank on the rising prospects of Donald Trump returning to the White House.

This signals that “risk aversion” among global investors is going through the roof. Uncertainty, heightened geopolitical risks and a looming wall of US tariffs are all bad news for the global economy, especially emerging markets.

**Read more:**[US elections at a glance – what you need to know if you’re in South Africa](https://www.dailymaverick.co.za/article/2024-11-05-us-elections-what-south-africans-need-to-know/)

**Read more:**[US election analysis and live updates](https://www.dailymaverick.co.za/article_tag/us-elections/)

The yield on the benchmark 10-year South African government spiked over 30 basis points on Wednesday morning to 9.66%, a further reflection of souring investor sentiment.

This is the first indication of what impact a second Trump presidency will have on the South African economy, and it bodes ill.

The fate of the [African Growth and Opportunity Act](https://ustr.gov/issue-areas/trade-development/preference-programs/african-growth-and-opportunity-act-agoa) (Agoa) is also now uncertain and with it at least 13,000 South African jobs which depend on duty-free access to the US market.

**Read more:**[SA joins global nail-biting over US elections while Agoa uncertainties persist](https://www.dailymaverick.co.za/article/2024-11-04-sa-joins-global-nail-biting-over-us-elections-while-agoa-uncertainties-persist/)

**Read more:**[The United States’ slide into splendid isolation will hurt South Africa](https://www.dailymaverick.co.za/opinionista/2024-11-05-the-united-states-slide-into-splendid-isolation-will-hurt-south-africa).

But Trump’s tariff plans – which most economists dismiss as ill-conceived or downright bonkers – would also hurt South African exports more widely to the US as well as worldwide because of the ripple effects on the global economy and trade. **DM**

[Media on Daily Maverick: "US Election poll"](https://www.dailymaverick.co.za/article/2024-11-06-rand-tanks-as-prospects-of-trump-comeback-rise/)