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Home News Economy

US hits SA with 12.5% tariff but spares citrus and cars

The new duty is less than half the 30% South Africa faced last year, and its biggest export lines to America are exempt.

Ezra Labuschagne by Ezra Labuschagne
25 July 2026, 09:45
in Economy, News
South Africa US tariff set at 12.5% | Southafriworld

What we know so far

The South Africa US tariff took effect at 6.01am on Friday, 24 July 2026, when a new 12.5% duty on most South African exports to the United States came into force.

South Africa is one of 60 economies hit in the same action, which the United States imposed under Section 301 of the Trade Act of 1974.

The United States Trade Representative found that all 60 economies had failed to effectively prohibit or enforce bans on importing goods produced with forced labour, and treated that failure as an unreasonable restriction on US commerce.

The tariff replaces a temporary 10% global duty that expired at the same moment.

The rate is lower than it was. During the 2025 tariff round South African goods faced a 30% charge, so the new 12.5% is less than half of that.

Crucially, the country’s largest export lines to the United States are exempt. Oranges, fruit juices and nuts are excluded outright, and so are passenger vehicles, bakkies, steel, aluminium, copper and wood products.

That is why the practical blow is narrower than the headline rate suggests, and why South African business has responded with concern rather than alarm.

The measure lands amid strained relations between Pretoria and Washington, and while South Africa’s access under the African Growth and Opportunity Act remains unresolved.

What the South Africa US tariff means for exporters and jobs

The exemptions are the story for the people whose livelihoods are exposed.

The United States accounts for close to 4% of South Africa’s agricultural exports, which were valued at $15.1 billion in 2025. The main trade is in citrus, berries, grapes, wine, fruit juices, apples, pears, apricots and nuts.

Because oranges, juices and nuts are exempt, a large share of that agricultural trade is shielded from the new duty. Citrus supports tens of thousands of jobs in the Western Cape, Eastern Cape and Limpopo, which is why the carve-out matters beyond the balance sheet.

The vehicle exemption is equally consequential. Motor vehicles and components are among South Africa’s most significant manufactured exports to the United States, and their exclusion protects assembly plants and their supply chains.

Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa and the Presidential Envoy on Agriculture and Land, framed the outcome as challenging but survivable.

He said the 12.5% rate is undesirable but represents a substantial improvement over the previous 30% tariff and keeps South Africa on a level playing field with its direct agricultural competitors.

Sihlobo noted that competitors including Australia, New Zealand, Peru and Chile face similar tariff levels, which limits the competitive disadvantage to South African producers.

He was candid about the lobbying that failed. He said the South African government, private sector and organised agriculture made submissions against the increase, but that the message did not find a fertile ear.

Key details and figures

How the Section 301 action is structured, and where South Africa sits:

TierRateWho
Lower tier10%17 economies including the UK, India, Canada, Mexico, Indonesia
Reciprocal partnersCapped at 10% or 12.5%EU, Taiwan, Japan, South Korea, Switzerland
Standard tier12.5%All other investigated economies, including South Africa

South Africa is number 48 of the 60 targeted economies. The duty is applied ad valorem, meaning in proportion to the estimated value of the goods.

The action follows a specific legal path. The United States launched the USTR investigation on 12 March 2026, about a fortnight after the US Supreme Court ruled that the earlier tariffs under the International Emergency Economic Powers Act were unconstitutional.

Public comment closed on 6 July, followed by hearings, and the tariffs took effect on 24 July. Unlike the earlier measure, this action does not carry an expiry date and does not require congressional approval to remain in effect.

The exemptions are set out in the annex to the presidential action, under the Harmonised Tariff Schedule of the United States.

Subheading 9903.05.86 exempts specific agricultural goods, including oranges, fruit juices, nuts, and select fresh or chilled beef, potatoes and onions.

Subheading 9903.05.90 exempts industrial and strategic materials, including aluminium, steel, copper, passenger vehicles, light, medium and heavy trucks, wood products and semiconductors.

Goods loaded before the implementation deadline are also exempt.

The earlier tariff round illustrates what is at stake for the goods that are not exempt. Under the 30% rate in 2025, South African agricultural exports to the United States fell 11% year on year in the third quarter of 2025, to $144 million, and dropped 39% year on year in the fourth quarter, to $81 million.

Even so, annual agricultural exports to the United States totalled $504 million in 2025, a decline of only 3% from 2024, cushioned by a surge in volumes during a 90-day pause earlier that year.

What happens next

Trade, Industry and Competition Minister Parks Tau has said the United States remains an important trade partner and that South Africa will continue discussions on several fronts.

Those fronts include the Section 301 measure itself, the renewal of the African Growth and Opportunity Act, and existing tariffs affecting steel, aluminium, vehicles and auto parts.

The government’s core argument to Washington has been that South Africa already prohibits goods produced with forced or prison labour under existing law, including Section 113 of the Customs and Excise Act, and that there is no evidence its major exports are made with forced labour.

That argument did not secure an exemption from the general 12.5% rate, though it may have contributed to the product-specific carve-outs.

Two questions remain open.

The first is how long the tariffs will remain lawful. The measure was constructed under Section 301 precisely because the earlier IEEPA tariffs were struck down, but further legal challenge cannot be ruled out.

The second is AGOA. South Africa’s preferential access under that programme is separate from this tariff action and remains under negotiation, and its outcome will matter more for some exporters than the 12.5% duty itself.

The diplomatic backdrop is unlikely to ease quickly. United States Ambassador Leo Brent Bozell III has publicly criticised South Africa’s foreign policy positioning, characterising Pretoria’s non-alignment as a choice rather than neutrality.

For now, the immediate effect is a 12.5% duty on the portion of South African exports not covered by the exemptions, with the largest agricultural and automotive lines protected.

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Source: Presidential action of the United States
Tags: AGOAagricultureDonald TrumpexportsNewsParks TauSouth AfricatariffsUnited StatesWandile Sihlobo
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Ezra Labuschagne

Ezra Labuschagne

Ezra Labuschagne is the founder, editor, and publisher of Southafriworld, an independent South African digital news publication. Based in Pretoria, South Africa, he leads the publication’s editorial direction, publishing standards, content review, and audience strategy. His work focuses on current affairs, public interest reporting, business, the economy, public policy, and major developments that affect daily life in South Africa. As founder and editor, he is responsible for final editorial oversight, including source review, accuracy, updates, corrections, and publishing standards across Southafriworld.

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