South Africa Unveils Support Measures In Response To U.S. Tariffs

South Africa on Monday announced a range of support measures for domestic industries facing a 30% tariff imposed by the United States this week. The measures include exemptions from certain competition regulations and the introduction of financial support mechanisms.

Officials firmly rejected speculation that the failure to secure reduced tariffs was linked to South Africa’s domestic affirmative action policies an area of criticism by U.S. President Donald Trump.

As Africa’s largest economy, South Africa had spent several months attempting to negotiate a deal with Washington. In its proposed “framework deal” to the Trump administration, Pretoria offered to purchase U.S. liquefied natural gas and invest $3.3 billion into American industries. However, despite a last-minute effort to enhance the offer, the negotiations ultimately failed.

According to South African officials, the tariffs threaten tens of thousands of jobs, particularly in the automotive and agricultural sectors, as the U.S. pursues a more protectionist trade agenda under Trump.

Speaking at a press conference, South Africa’s trade and foreign ministers announced the development of a “block exemption” under the Competition Act, allowing industry competitors to collaborate and coordinate their response. The exemption is expected to be published by the end of the week.

The government is also formulating a broader support package, which includes a working capital facility, funding for plant and equipment, and job-loss mitigation support through the Unemployment Insurance Fund (UIF).

The ministers emphasized that South Africa does not pose a threat to U.S. national security or its economy. On the contrary, they noted that South African exports support the U.S. industrial base and largely complement, rather than compete with, American products.

Foreign Minister Ronald Lamola declined to engage in speculation over whether the high tariff might be politically motivated, referencing U.S. criticism of South Africa’s stance on racial equity policies and its genocide case against Israel at the International Court of Justice both opposed by President Trump.

Lamola stressed that South Africa remains committed to constructive engagement with the U.S., based on the framework deal it has already submitted.

Meanwhile, trade officials announced plans to establish an export support desk to help affected companies explore alternative markets, facilitated through embassies and connections with potential buyers. A more comprehensive set of relief measures will be reviewed at Wednesday’s cabinet meeting.