South Africa faces new economic hurdles following the United States' announcement of increased import tariffs on steel and aluminum. President Trump's decision includes tariff hikes of up to 50%, adding to the existing 25% increase from April.
The South African sector is already struggling with disrupted global supply chains and rising manufacturing costs. This impacts the competitiveness of South African automotive products in the US market. Businesses are now looking to diversify into markets in Africa, Asia, Europe, and the Middle East.
Recently, South Africa and other US trading partners benefited from a 90-day tariff suspension beyond the base 10% tariff. This provided an opportunity for negotiations. The goal was to protect key exports and explore new trade opportunities, as discussed during a meeting between President Ramaphosa and his US counterpart.