Global Daily Tax News, South Africa Sets Out Response To US Tariffs, (Aug 15, 2025)

South Africa's Government has indicated that it will consider lowering tariffs on US goods, in an attempt to secure a reduction in the 30-percent reciprocal tariff rate imposed from August 7 on domestic goods.

The Government said it will continue negotiations with the US Administration to reduce the tariff rate. It highlighted South African efforts to reduce non-tariff barriers on US agricultural products, in particular for poultry, pork, and blueberries.

The Government also noted US requests to lower tariff rates on American goods, considering preferential access granted to the European Union under the SADC-EU Economic Partnership Agreement. The Government said, "South Africa continues consultations with industry and in this regard, in consultation with other members of the Southern African Customs Union, will identify specific lines to respond to this request."

The Government has also said it will consider measures to counter dumping of goods in the domestic market that would otherwise have been destined for the US market but for the Administration's reciprocal tariff policy.

The Government said: "The unilateral tariffs imposed by the United States of America do not only apply to South Africa. They also affect over 130 trading partners with whom American consumers and producers interact. In this regard, many of the orders destined for that nation that now face prohibitive restrictions to enter that market, will seek out other 'outlets' for such production. Furthermore, chronic overcapacity observed in the world markets for key product markets like steel, glass, subsidized agricultural products, solar and automotive vehicles will make this search incessantly harmful for our domestic industry. As such, South Africa stands ready to make use of its trade remedy measures to safeguard and protect its industry, within the prevailing agreements of the World Trade Organization."

"This will involve consideration and, on the balance of evidence, the use of anti-dumping, anti-subsidy, and safeguard measures to protect domestic industry which may be affected by such trade deflection and/or diversion," it concluded.