SA exports to the US attract a 30% duty

The global tariff breakdown

You have six countries with a tariff higher than South Africa’s 30%  (Iraq, Laos, Myanmar, Serbia, Switzerland and Syria) and one with the same tariff (Algeria). Then you have the others who are named in the Executive order with specific duty rates, ranging from 10%, such as Brazil and the UK, to 25% for countries like India and Kazakhstan and lot’s in between with rates ranging from 15% to 20%. Finally, we have those who are not named who all receive 10%.

Lesotho, who was facing a 50% tariff, sees their tariff drop to 15% and Eswatini, who is not named, will be taxed at 10% (taking in dangerous criminals really does pay off, with El Salvador and South Sudan also coming in at 10%).

Brazil, despite running a trade deficit with the US, was facing a 50% tariff because they were prosecuting ex President Bolsonaro for an attempted insurrection. They got 10% so who knows what is actually going on.

From when do the tariffs apply?

According to the White House, the “liberation day” tariffs go into effect on 7 August 2025

“Except for goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on August 7, 2025, and entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. eastern daylight time on October 5, 2025”

Which appears to imply that if your goods are in transit by 7 August, and cleared into the US before 5 October 2025, you will retain your current tariffs.

Implications for SA Inc?

The duty level is far less of a problem than the differences in duty rates between SA and almost everyone else. We don’t compete with American orange farmers. We are up against other Southern Hemisphere producers like Chile and Peru, who are all lower than we are. This pain will be felt, particularly from next year. The same for wine and the many other products we ship in smaller quantities, often by smaller companies.

But this is not yet over. I have no doubt that Minister Tau will soon (today?) give us a detailed breakdown of the situation, allowing businesses to update their strategies.

We will be sending out regular updates as more information becomes available.