Dear Editor
The announcement by U.S. President Donald Trump of a 30% tariff on South African goods and produce exported into the United States from 01 August 2025 is deeply concerning and will have wide ranging and devastating consequences for South Africa.
Whilst not explicit, the announcement would signal the end of the African Growth and Opportunity Act (AGOA) which gives South Africa duty-free access to the US for more than 6000 products, including goods in the automobiles, agriculture and textile industries.
The Democratic Alliance stands in solidarity with every South African business, entrepreneur, farmer, manufacturer, miner and all others who export goods and produce to the United States, who are confronting this news with worry and uncertainty.
South Africa has one of the highest unemployment rates in the World. The starkest impact which concerns the DA deeply is that thousands of farmers, manufacturers and workers jobs are now at risk. Billions of rands will be lost in export revenue, making this a crippling blow to the economy.
Now, more than ever the ANC needs to accept the fact that South Africa is in need of urgent reforms that will bring about increased economic growth, and try to cushion some of the job losses which will no doubt follow yesterdays announcement by the US President.
Some of these urgent reforms include:
- Removal of barriers that impede private sector participation in the production and transmission of electricity
- Concessioning of the ports, to improve efficiency and turnaround times of getting products in, and out of the Country
- Boosting private participation in freight rail, with appropriate infrastructure investment and improved security to safeguard vital infrastructure
- Amendments to the Expropriation Act that renew confidence in the protection of private property
- Review of the Broad-based black economic empowerment Act, to ensure that we focus on poverty, not race
- Intervention in failing local governments to improve service delivery and address corruption and financial mismanagement
Finally, the President needs to decisively deal with issues of corruption, which are systemic throughout all spheres of government.
As Minister of Agriculture, I remain committed to strengthening trade relations with our existing international partners, while actively working to expand access to new markets for South African produce. Since taking office, this has been a strategic priority—now more critical than ever in light of the newly proposed tariffs by one of our major trading partners.
The ANC has historically aligned itself with policies and Country’s which the U.S have perceived as being contrary to their interests. The brief extension from 9 July to 1 August provides the President with a small window of opportunity to make the necessary decisions to improve trade relations.
We trust this opportunity will not be squandered.
Regards
John Steenhuisen MP
Leader of the Democratic Alliance