The Governor of the South African Reserve Bank, Lesetja Kganyago, has raised concerns that the tariffs imposed by former United States President Donald Trump on South African goods could lead to serious job losses in the country. Kganyago said the new tariffs could affect about 100,000 jobs, especially in the agriculture and automotive sectors. He spoke on Wednesday during an interview with local radio station 702, where he explained that the 30 percent tariff placed on certain South African exports, effective from August 1, would have negative effects on the economy.
Kganyago warned that agriculture is one of the sectors most at risk because it employs many low-skilled workers. He pointed out that specific products like citrus fruits, table grapes, and wines are already suffering under the weight of the new tariffs. These products have traditionally been strong export items for South Africa, particularly to the United States. The governor said that the situation is particularly alarming for farming communities that rely heavily on exports for survival.
Farmer associations in South Africa have also sounded the alarm on the potential impact of the tariffs. They noted that products such as citrus fruits, macadamia nuts, grapes, wine, fruit juices, and ostrich leather are all affected. These are some of South Africa’s key agricultural exports, and the new trade barriers threaten the livelihoods of thousands of producers and farm workers. In particular, the citrus industry is facing a serious threat, with about 35,000 jobs said to be at risk. This is a major concern for towns like Citrusdal in the Western Cape, where the economy heavily depends on citrus farming and exports to the U.S. market.
The automotive sector is not spared either. Kganyago highlighted that South African car exports to the United States have already plummeted by more than 80 percent since the Trump administration imposed import tariffs on vehicles in April. This sharp decline has raised serious concerns about the sustainability of jobs in the car manufacturing industry, which has long been a vital part of South Africa’s industrial sector.
South Africa is already battling with a high unemployment rate, which stands officially at 32.9 percent as of the first quarter of this year. However, when a broader definition that includes discouraged job seekers is applied, the figure rises to a staggering 43.1 percent. The country’s job market has been struggling for years due to slow economic growth, structural challenges, and policy uncertainties. The possibility of losing an additional 100,000 jobs due to the U.S. tariffs could deepen the unemployment crisis and worsen social and economic conditions for many families.
Kganyago stressed that if no alternative measures are found to mitigate the effects of the tariffs, South Africa could face a severe employment challenge. This would compound existing economic difficulties and increase the strain on social services and government interventions aimed at reducing poverty and inequality.
Trade relations between South Africa and the United States have been significant over the years, especially under the African Growth and Opportunity Act (AGOA), which provides eligible African countries with duty-free access to the U.S. market for certain goods. However, the imposition of tariffs threatens to undo the progress made in trade cooperation and economic partnership between the two nations.
Industry leaders and economic experts have called on the South African government to explore diplomatic solutions and seek trade negotiations to address the tariff issue. They also urged the private sector to diversify export markets and reduce reliance on the U.S. to protect the country’s vulnerable industries. Without effective intervention, the combined effects of reduced exports, job losses, and weakened economic sectors could have long-lasting consequences for South Africa’s economy.
