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TRUMP 2.0 ANALYSIS

The latest Trump tariffs on SA smells of a bigger BRICS battle

In a move that has South African exporters clutching their rosé and oranges, Trump’s latest tariff slap—a hefty 30% on all exports—has left the local wine industry and its boardrooms scrambling to navigate the chaos of unilateral trade warfare.
The latest Trump tariffs on SA smells of a bigger BRICS battle US President Donald Trump reacts during a dinner with Israeli Prime Minister Benjamin Netanyahu (not pictured) in the Blue Room of the White House in Washington, DC, USA, 07 July 2025. (Photo: EPA / ALEXANDER DRAGO / POOL)

A late-night WhatsApp response from a sales director in the local wine industry read simply: he’s a [expletive] idiot – after being asked for comment on Donald Trump’s latest trade letter to South Africa (SA) published on Truth Social.

That single sentence might just capture the collective sigh echoing across boardrooms, vineyards and orchards from Constantia to Killarney. 

On Monday, 7 July, President Donald Trump signed an order imposing a 30% tariff on all South African exports to the US, effective from 1 August. It’s a hammer blow – not just to South African oranges, macadamias and wine, but against an entire trade philosophy. 

Reciprocity or retribution?

This is a vintage Trump play: loud, unilateral and unashamedly nationalist. The US President frames it as a patriotic correction of “decades of bad trade deals”, claiming that persistent trade deficits are not just bad economics, but existential threats to US sovereignty.

Answering press questions, Trump returned to his well of confusion and obfuscation: “They’re going to be tariffs. Tariffs are going to be the tariffs… But they go into effect on August 1st.”

Read more: Trump slaps 30% tariff on SA exports to US from 1 August

His spokesperson, Karoline Leavitt, offered her own, unique take during a Monday press conference, describing the President’s approach as if he were plotting a new season of The Apprentice: “He’s looking at every country on the planet, seeing where they are ripping off the American people… and he’s correcting that.”

BRICS bites back

Meanwhile, the newly expanded BRICS bloc (now including Indonesia and a growing cohort of partners) has fired back in diplomatic parlance.

In their Rio de Janeiro declaration, they condemned “unilateral coercive measures” as distortive and inconsistent with WTO rules, reaffirming a vision of a multilateral, fairer global trade order.

Trump’s reaction? You guessed it: even more tariffs. Threatening an additional 10% penalty on countries “aligning with BRICS anti-American policies” and adding fuel to an already roaring geopolitical braai fire.

Pork disease and power plays

Our micro-sectors have been fighting this battle for a long time. The South African pork industry, for example, is resisting US demands to drop biosecurity protocols against Porcine Reproductive and Respiratory Syndrome (PRRS), a disease that SA has, so far, kept at bay.

Read more: Trump’s 30% tariff on SA based on inaccurate trade data — Ramaphosa

Dr Peter Evans from the South African Pork Producers’ Organisation warns that relaxing these standards could be catastrophic: “We’re just trying to keep our industry disease-free. Every time Agoa comes around, we have the same fight.”

Evans is referring to the 2015 standoff over pork imports, when US officials insisted that SA’s PRRS-driven pork restrictions amounted to protectionism, while Pretoria’s veterinary authorities stood firm that safeguarding the nation’s disease-free status was non-negotiable.

That controversy escalated and became entangled with other agricultural disputes – most notably the long-standing tensions over US poultry and beef exports – with SA’s Agoa eligibility hanging in the balance until a last-minute compromise paved the way for continued market access.

Local jobs in firing line

The economic tremors of the latest earthquake are already being felt. Sonja Boshoff, chair of Parliament’s select committee on economic development and trade, was direct in a media statement shared with Daily Maverick: “These industries are not abstract economic indicators; they are lifelines for tens of thousands of workers.”

As previously reported, the citrus industry alone supports more than 35,000 jobs and contributes more than R38-billion to the economy annually.

Read more: US tariff uncertainty casts shadow over South Africa’s citrus lifeline

Boshoff warned that sudden tariff hikes sabotage decades of careful trade diplomacy, undermine confidence in agreements like Agoa, and threaten entire rural economies.

 “No country can plan its industrial or export strategy under a cloud of sudden and unilateral tariff hikes.”

In political corridors, there’s talk of offering strategic Liquefied Natural Gas (LNG) procurement to the US as a bargaining chip. Boshoff, however, insists on swift, transparent negotiations. “We cannot afford diplomatic dithering,” she said.

What this means for you

  • Jobs on the line: The citrus, steel and agricultural sectors face immediate existential risks. Exporters may pass costs onto local prices, hurting consumers too.
  • A shrinking US doorway: Agoa’s benefits are now largely neutralised, and producers relying on the US market must urgently diversify.
  • AfCFTA as a safety valve: Local businesses can start exploring new African markets, but this demands investment, strategy and robust digital defences against fraud.
  • Policy crossroads: Government support, logistics aid and fast-tracked trade deals with the EU and Asia will be vital to plug revenue holes.

The continental plan B

While the US door starts to close, some industry players are eyeing the African Continental Free Trade Area (AfCFTA) as a lifeline. Gregory Saffy of FedEx calls it “one of the most important levers for driving inclusive growth and unlocking the continent’s full trade potential”.

South African exports under AfCFTA have already reached around R820-million since January 2024, including mining equipment, plastics, apparel and food products. Yet for small and medium businesses, the reality is more nuanced.

Saffy points out that eliminating tariffs doesn’t magically create customers: “A free trade agreement doesn’t create demand for a business’s products.” 

SMEs need to be export-ready, secure payment systems, and understand new markets; no small feat in a continent where paperwork and payment fraud are still major obstacles.

He advocates digitising customs systems, building transparent tariff schedules, and boosting SME readiness through targeted training and support. 

Read more: Oval Office drama notwithstanding, White House door has been opened for SA

The ultimate prize? A less US-dependent, more intra-African trade future that could blunt the force of global protectionism.

SA is caught between an increasingly hostile US and a collaborative but still-evolving BRICS vision. As Trump pushes his “America first” agenda to new extremes, local producers are being forced to confront a reality where no market is guaranteed. DM

Comments (8)

Rod MacLeod Jul 9, 2025, 07:04 AM

"SA is caught between an increasingly hostile US and a collaborative but still-evolving BRICS vision." Indeed. But remember who fired the first salvos in this increasing hostility. Unnecessary except for the fact that the gaping ANC maw needed sustenance, and took it from Russia, China and Iran - which sustenance came at a cost to the beloved country. Instead of neutrality, the ANC chose the BRICS path for South Africa. Now we live with the consequences.

William Nettmann Jul 9, 2025, 09:59 AM

One of the consequences of being part of BRICS is having an alternative. There is an old proverb about eggs and baskets. BRICS isn't ideal by any means, but then neither is the USA.

hans@separations.co.za Jul 11, 2025, 10:55 AM

Sorry, but what business do we have with Iran, Russia and China? China is basically mainly imports, so cheap junk. We need export markets and partners to grow our economy, China is not the right partner, they are there to plunder(bringing their own workforce). And all three countries are dictatorships, by the way. Europe would have been the way to go, they would have invested and supported local work forces, but that ship has sailed.

Mike Lawrie Jul 9, 2025, 07:08 AM

If you are going to export into Africa, then you must face up to the "tariffs" that come in the form of plain brown envelopes and rolex watches.

Wilhelm van Rooyen Jul 9, 2025, 08:16 AM

And non-payment...

James Crichton Jul 9, 2025, 12:09 PM

For sure

Rod MacLeod Jul 9, 2025, 07:30 AM

Africa's share of global trade is only around 2,5% to 4%, and in that only +/-15% of Africa's trade is between African countries. If you add to this that we're all heavily reliant on exporting primary commodities with very few manufactured goods, plus Africa's transportation and logistics infrastructure being severely retarded, plus we have difficult customs regimes, plus endemic corruption, do you realistically see AfCFTA as a $9bn lifeline? In our lifetimes?

D'Esprit Dan Jul 9, 2025, 08:51 AM

In response to Mike and Rod - the rest of Africa is the second largest destination for value-added exports from South Africa; bigger than the USA and second only to the EU. Exports to RoA rose from R324bn in 2020 to reach R572bn in 2024, according to SARS data (and this excludes billions in informal exports to our neighbours), with between 85% and 90% being value-added goods. What we need from DTIC is a massive, co-ordinated and well-funded push to increase this further.

Rod MacLeod Jul 9, 2025, 12:37 PM

Thank you Dan. In 2024, the number was U$30,7bn, of which U$24,8bn was to our neighbours Mozambique (U$6,6bn) Botswana (U$4,8bn) and U$ 14,4bn to Zambia, Zimbabwe, Namibia, Lesotho and Swaziland. U$5,9bn to the rest of Africa, 38 countries. Of these countries, Please take a close look at the net debt positions. As an aside, we did U$ 180,000,000-00 to Israel that year, and U$ 8,540-00 to Palestine, just to reinforce the point on how clever we are about our relationships with trading partners.

Rod MacLeod Jul 9, 2025, 12:39 PM

My source is United Nations COMTRADE database on international trade, South Africa, 2024.

D'Esprit Dan Jul 9, 2025, 01:09 PM

Thanks Rod, yes, UN Comtrade uses national data and converts to US$. Our trade with RoA is largely with our neighbours in SACU/SADC as you've pointed out, but we thus have the opportunity, with the correct support, to grow that considerably to other regions - our competitors in MENA, Asia and Europe are doing it, and eating our lunch in the process. My point is that COULD be exporting more to RoA if our government took it seriously. The money says not.

D'Esprit Dan Jul 9, 2025, 08:55 AM

To add to my comment above, a country like the UAE has gone from nowhere 20 years ago to become a top 10 exporter to Africa driven by a proper policy and plan to increase connectivity and exports, through strong support for exporters at every level. So has Turkey. I'd take 50% of the money the SETAs waste and build a proper export department within DTIC to focus on Africa, the Middle East, Europe and Asia (maybe Latin America at a push).

Johan Buys Jul 9, 2025, 11:24 AM

Both yours are excellent points

D'Esprit Dan Jul 9, 2025, 01:15 PM

You're making me blush.

MT Wessels Jul 9, 2025, 09:10 AM

An journalistic analysis of a broad - but specific - product sample will be more useful than the usual pearl clutching at every Monday-morning Trump brain-fart. American consumers will be paying these tarrifs, on pain of reduced choice. So for example, the US is not going to plant more citrus orchards (expensive, labour intensive), so who would they buy oranges from if not SA, and how do the tarrifs on that country (e.g. Brazil) stack up against SA? What is the post-tarrif competitive picture?

tcrhybrid2003 Jul 10, 2025, 07:06 AM

Good point but Brazil orange crop is built for juicing [1 million tonnes and over] and has a class 2 appearance so they are not in the fresh orange export market. South African citrus represents the bulk of the southern hemisphere counter seasonal fruit so this is a dilemma. Will American consumers pay more for out fruit. I is possible if the 30% tariff remains that some of this will be absorbed through the supply and not just by the consumer however 30% is a big amount to absorb

Johan Buys Jul 9, 2025, 11:23 AM

It is pointless trying to distill strategy from Trump. 1. The fool says VAT is an import tax. You know, like how French cars sold in France are exempt. 2. Their first calculation of the % tariff others charge the US is idiotic. So ours was 60% because for SA our exports/their imports = 1.6. Clueless. 3. Trump goes on about trade in goods and ignores trade in services. The US has a $300 billion trade surplus with the rest of world. Idiots have no strategy.

Rae Earl Jul 10, 2025, 10:31 AM

Good interaction from all DM commentators on this. Broadly speaking, Trump in his mindless stupidity is doing SA a favour. The saying "Necessity is the mother on invention" applies pretty well here. We need to export our products and being side lined by the US iis forcing SA to diversify its customer base. Thanks to necessity, it's being done on a rapidly increasing and fast base. How bad could that be?