South Africa has rolled out a more detailed, multi-pronged strategy to support local businesses hit by the United States’ surprise 30% import tariff — a move that has sparked concern across industries reliant on U.S. exports.
In a joint statement, the Departments of International Relations and Cooperation and Trade, Industry, and Competition outlined their evolving response, highlighting ongoing diplomatic negotiations, export diversification efforts, and a suite of economic support measures aimed at building long-term resilience.
Until now, the government’s response had largely remained vague, with only high-level mentions by President Cyril Ramaphosa of initiatives like the “Export Support Desk.” The latest announcement adds more clarity, though many of the relief components remain in development.
Diplomatic Push Remains Key
At the center of the government’s response is continued engagement with the U.S. through diplomatic channels.
“South Africa is committed to a principled approach, and we will continue to use all available diplomatic channels to negotiate a mutually beneficial trade deal with the United States,” the departments said.
Talks with Washington have yet to yield a breakthrough, with two attempts at a revised trade agreement falling short of lifting or reducing the tariff. Still, officials remain focused on securing a deal that advances South Africa’s economic interests while preserving longstanding bilateral ties.
Expanding Export Horizons
Beyond the U.S., the government is accelerating efforts to diversify its export markets — a long-term goal that’s now taking on greater urgency. Authorities are targeting trade expansion across Africa, Asia, the Middle East, Europe, and the Americas.
They pointed to a R90 billion investment package signed with the European Union earlier this year, as well as new market openings in China and Thailand. China, in particular, is being eyed as a high-potential $200 billion market for South African exports. Additional trade inroads are being made in the UAE, Qatar, and Saudi Arabia.
“We have also developed a number of Trade and Investment Packages with a number of countries, including Japan, that aim to unlock new market access opportunities,” the departments said.
Immediate Relief Measures for Businesses
While long-term strategies are still evolving, several key short-term interventions are either underway or in planning:
Export Support Desk – Launched
This initiative serves as a direct support channel for companies impacted by the U.S. tariffs. It offers real-time updates, advisory services, market entry guidance, and connections to embassies and high commissions abroad. Its main aim is to help businesses pivot to alternative export markets.
Direct Company Assistance – In Development
Specific support to help companies absorb the immediate financial impact is still being finalised. The government has promised details “shortly,” stating that the package will include strategies to protect jobs and maintain production capacity.
Localisation Fund Support (LSF) – In Development
In collaboration with the Industrial Development Corporation (IDC) and other agencies, the LSF will launch an open call for applications from businesses in affected sectors. The fund is intended to help firms improve competitiveness and efficiency.
Export and Competitiveness Support Programme (ECSP) – In Development
Authorities plan to introduce a facility to provide working capital and equipment support, addressing urgent short-to-medium-term needs across industries.
Job Protection Measures – In Development
The government is also working with the Department of Labour to explore ways to minimise job losses. Business groups have proposed a revival of schemes similar to the Temporary Employer/Employee Relief Scheme (TERS) used during the COVID-19 pandemic.
Competition Act Block Exemptions – Draft Pending
To support coordinated action among exporters — such as shared logistics, infrastructure, and market intelligence — the government plans to publish a draft Block Exemption. This would temporarily allow collaborations that might otherwise breach competition laws.
“A draft Block Exemption will be published by the end of the week so that the process can be concluded expeditiously,” the departments confirmed.
Still a Work in Progress
While the government’s response marks a shift toward more concrete action, many key relief components are still “to be determined.” However, officials insist the steps form part of a broader resilience strategy aimed not only at surviving the U.S. tariffs but positioning South Africa as a more agile and competitive global exporter.
With trade talks ongoing and support frameworks being built, businesses will be watching closely to see how quickly these plans move from promise to implementation.
