South African goods exported to the United States will face a 30 per cent tariff starting August 7. The announcement was made by United States President Donald Trump, who singled out South Africa in the decision.
Other southern African countries, including Lesotho and Zimbabwe, will also be affected but with a lower tariff of 15 per cent.
The move comes as a major blow to South Africa, which has long enjoyed duty-free access to U.S. markets under the African Growth and Opportunity Act, known as AGOA. Key sectors including automobiles, agriculture, and textiles are expected to be hit the hardest.
Similarly, United States President Donald Trump has announced new tariffs on nearly 70 countries, including a sharp 35 per cent levy on neighbouring Canada.
The move, aimed at reshaping global trade to favour the U.S. economy, was revealed in an executive order yesterday. However, in a slight concession.
The measures are part of Trump reciprocal trade policy, designed to strengthen U.S. exports and boost domestic manufacturing by limiting foreign imports
While President Donald Trump reveals that the move will benefit American workers, critics warned that it could fuel inflation and disrupt global supply chains, putting further pressure on the U.S. economy.