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South Africa unveils revised plan to address US tariffs

South Africa unveils revised plan to address US tariffs

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The South African government has presented a new trade strategy aimed at reducing the 30% unilateral tariffs that the United States has enforced. Speaking at a press briefing in Pretoria, Minister of Trade, Industry and Competition Parks Tau and Minister of Agriculture John Steenhuisen outlined a five-pillar approach focusing on: Direct engagement with the US, diversifying export markets, providing economic support, strengthening trade defence mechanisms, and boosting domestic demand.

Cabinet has approved the submission of this updated proposal to Washington as the basis for renewed talks. The revised plan builds on a May 2025 offer and directly addresses issues highlighted in the US’s 2025 National Trade Estimate Report.

South Africa has met US requirements on sanitary and phytosanitary measures, paving the way for trade in: Poultry: Imports will operate under a conditional self-ban and self-lifting framework, allowing the US to use the 72,000-ton tariff quota agreed in 2016.

Blueberries: Access granted from US states free of fruit fly, with mitigation measures in place.

Pork: Imports permitted in line with bio-security protocols.

Tau confirmed that the USA-Africa Trade Desk will ship poultry and pork from Georgia, Mississippi, South Carolina, North Carolina and Alabama within two weeks, via ports in New Orleans (Louisiana), Savannah (Georgia) and Norfolk (Virginia).

Tariff disparity and trade negotiations

The US has also urged South Africa to reduce certain tariffs to address the imbalance created by the SADC-EU Economic Partnership Agreement. Tau said consultations with local industries and Southern African Customs Union partners are ongoing to identify possible tariff adjustments.

A high-level team from the Departments of Trade, Industry and Competition and Agriculture will lead negotiations, aiming to demonstrate that South African exports complement rather than compete with US industries. While the US is South Africa’s third-largest trading partner, South Africa ranks only 43rd for US exports, making up just 0.25% of US import volumes.

The US market accounts for roughly 4% (R9.8 billion/US$537 million) of South Africa’s agricultural exports a 104% jump since 2018.

Safeguards for local agriculture

Steenhuisen stressed that strict controls are in place to prevent diseases such as porcine reproductive and respiratory syndrome (PRRS) from entering the country, including the removal of certain pork glands before import. He warned that an outbreak could devastate the small domestic pork industry and threaten food security.

The self-imposed ban on US poultry during avian flu outbreaks — now paired with a self-lift system — addresses repeated concerns from the US Trade Representative that health restrictions could block US access to its agreed quota.

The government has also launched an economic support package for affected companies, including: An Export Support Desk as a direct help point, a Localisation Support Fund, an Export and Competitiveness Support Programme, job loss mitigation measures, and the Block Exemption for Exporters will be published on the Department’s website by week’s end.

Expanding markets and local demand

South Africa is accelerating export diversification, targeting the African Continental Free Trade Area, Europe, Japan, Vietnam, Thailand, the Middle East, and India. Tau noted that the effort is tied to job protection as much as to trade performance.

The “Proudly South African” initiative will expand corporate outreach and promote domestic product sales through its online platform, which also has potential for future export use. Tau added that ports such as Durban and Cape Town may see shifts in export volumes as talks with the US progress.