South Africa only imposes a 7.6% overall tariff on products from the United States
South Africa currently imposes a 7.6% overall tariff on products from the United States, and 8.5% on agricultural imports.
This was revealed by the National Trade Estimate Report on Foreign Trade Barriers, released by the United States on 31 March 2025.
This is a comprehensive report underlining foreign barriers to United States exports of goods and services.
Within the report, the United States highlighted the significant trade barriers it is facing with South Africa.
It said South Africa and the United States primarily discuss their trade and investment issues under the Trade and Investment Framework Agreement (TIFA).
The report noted that South Africa currently imposes moderate tariffs on imports from the United States.
South Africa currently imposes a 7.6% overall tariff on United States imports, and 8.5% on agricultural imports
However, one concern for the United States is that South Africa could significantly increase these tariffs under the World Trade Organization (WTO) tariff bounds.
This is because South Africa has bound 93.8% of its tariff lines to the WTO bound tariffs, which are subject to change.
The average top WTO bound rate on agricultural product imports could increase to 39%, with tariffs on some agricultural products allowed to rise to 597%.
The United States specifically highlighted how South Africa used tariffs to decrease poultry exports from the US to South Africa.
South Africa increased tariffs on “bone-in chicken” from 37% to 62%, significantly reducing US chicken exports to South Africa.
America mentioned that South Africa’s trade authority (SAITAC) is considering further changes to the tariff structure on poultry products, which would increase these tariffs even more.
South Africa also maintains restrictive and inconsistent import requirements on US meat, poultry, and pork, often exceeding international standards and limiting market access.
The report stated that some progress has been made in this area, but many United States products remain ineligible in South Africa.
Concerns among United States companies
United States exporters said they face high rejection rates and burdensome conditions when selling goods to South Africa.
The most significant trade concern to the US is the negative impact of the Southern African Development Community–European Union Economic Partnership Agreement (SADC-EU EPA).
The United States stated that it has highlighted these concerns in previous communication with South Africa.
The US is concerned that the SADC-EU EPA creates large tariff disparities between South African imports from the US and imports from Europe.
The United States pointed out the imbalance in trade preferences, noting that while South Africa enjoys generous access to the U.S. market under AGOA, the SADC-EPA agreement could undermine US exports to South Africa.
The United States also highlighted barriers and policies that prevent it from allocating capital to South Africa.
The most significant barrier was that South Africa signed a bill explicitly allowing the expropriation of property, including land, without compensation in certain circumstances.
It further stated that state-owned enterprises play too big a role in the private sector, limiting competition in many industries.
The report highlighted restricted competition within the electricity, transport and telecommunications industries.
In terms of government procurement, it was stated that US companies had significant difficulties when competing for government tenders.
Tenders are often cancelled without explanation and awarded in non-transparent and closed processes.
The US has issues with South Africa’s failure to follow the global guidelines of transparent government contracting stipulated under the WTO.
Donald Trump imposes 30% tariffs on South Africa
The data from the National Trade Estimate Report on Foreign Trade Barriers does not support United States President Donald Trump’s claim that South Africa charges 60% on US imports.
On Wednesday, Trump imposed 30% tariffs on South Africa, calling the country one of the worst offenders.
He said the United States would implement the long-talked-about reciprocal tariff structure to balance trade and put America first.
He claimed countries worldwide were exploiting trade with the United States and cheating by running massive surpluses.
He said they achieved these surpluses by imposing steep and hidden tariffs through value-added tax (VAT) and other measures.
During the briefing, the US President pulled out a chart showing the new tariffs that will be imposed on a long list of countries, including China, the EU, India, Japan, and South Korea.
These countries were dubbed the “worst offenders”. Notably, South Africa is listed among these countries.
While the US president initially discussed fully reciprocal tariffs before the announcement, he said the United States would be kind and implement “discounted” rates.
For example, while Trump claims China is imposing tariffs of 67% on the US, the US would charge a “discounted” rate of only 34%.
For South Africa, Trump claimed that the tariffs on the United States amounted to 60%. In turn, it will implement a “discounted” 30% tariff on the country.
“A lot of bad things are happening in South Africa,” Trump said. “We send them billions of dollars, but we had to cut their funding because bad things are happening.”
Trump said that if any country wanted to be exempt from the tariffs, it would simply have to move its production to the United States.
The president also announced a global 25% tariff on all imported vehicles, which will take effect from midnight in the United States.
The reciprocal tariffs will become effective on 9 April 2025.
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