South Africa and the US discuss a new trade deal as Ramaphosa pushes to defuse tariff tensions with Washington

South African President Cyril Ramaphosa and U.S. officials discussed a new trade deal on August 6, 2025, amid the imminent imposition of U.S. tariffs on South African goods. According to South Africa’s Presidency, Ramaphosa’s outreach aimed to defuse tensions and negotiate a more balanced trade relationship following the U.S. decision to levy tariffs on key South African exports.

The tariffs target key sectors such as agriculture and automotive manufacturing, which South African officials have described as a serious threat to jobs, export earnings, and industrial competitiveness. The tariffs were applied unilaterally by the United States under President Donald Trump’s trade policy, South African government sources said.

The U.S. imposed a 30% tariff on South African goods effective August 7, 2025, including a separate 25% levy on vehicles and car parts, according to statements from South Africa’s Presidency and the Department of Trade, Industry and Competition (DTIC).

In response, President Cyril Ramaphosa reached out directly to U.S. President Donald Trump by phone on August 6, 2025, as part of efforts to defuse tensions and negotiate a more balanced trade relationship. The Presidency said Ramaphosa instructed South Africa’s negotiating team to urgently engage with the U.S. based on a framework offer submitted on May 20, 2025. The outreach was described as an attempt to reduce the impact of the tariffs before or as they came into force.

South Africa’s Cabinet approved a revised offer on August 7 to serve as the basis for ongoing negotiations with the U.S., according to DTIC. The revised offer builds on the earlier proposal and aims to address U.S. concerns regarding trade surplus, reciprocity, and trade practices. The framework deal includes a provision allowing tariff reviews once a broader trade settlement is reached, the Presidency said. However, South Africa’s negotiating team is still awaiting the U.S. template for the talks.

The South African government’s official response strategy rests on five pillars: continued engagement with the U.S., export diversification, support for affected companies and workers, trade defense measures, and demand-side interventions, DTIC officials said. Cabinet endorsed an Economic Response Package designed to cushion the impact on vulnerable businesses and employees. This package includes a Localisation Support Fund and an Export and Competitiveness Support Programme, which provide working capital and plant-and-equipment financing.

DTIC has established an Export Support Desk to assist companies affected by the tariffs. At the time of the statement, 23 companies had already used the desk, and officials said more than 54 exporters to the U.S. had been engaged on tariff updates, negotiation developments, and market diversification strategies. The government has indicated readiness to consider anti-dumping, anti-subsidy, and safeguard measures consistent with World Trade Organization rules if import surges or dumping threaten domestic industries.

The automotive sector is particularly exposed, with exports to the U.S. valued at over $1.34 billion annually in 2023, according to the Institute for Security Studies’ African Futures blog. Other vulnerable sectors include agriculture and steel, while key mineral exports such as platinum group metals, coal, gold, manganese, and chrome were explicitly excluded from the tariffs, DTIC and related sources confirmed. U.S. Trade Representative data shows total U.S. goods and services trade with South Africa reached an estimated $26.2 billion in 2024, with U.S. goods exports to South Africa at $6.4 billion and imports from South Africa at $16.5 billion in 2025, resulting in a $10.1 billion U.S. goods trade deficit.

In light of the tariffs, South Africa has intensified efforts to diversify its export markets. The country has formalized a framework agreement with China for a new trade arrangement, including tariff-free entry for certain South African products such as fruits, the Department of Trade and Industry reported. Media outlets including PBS and Deutsche Welle have noted South Africa’s pursuit of alternative markets to reduce dependence on the U.S. while negotiations continue.

The ongoing diplomatic and trade engagements reflect South Africa’s broader strategy to protect employment and industrial capacity amid shifting global trade dynamics. The government has emphasized that its response is aimed at safeguarding economic interests without escalating into a trade war. Further discussions between the two countries are expected as South Africa awaits the U.S. template and continues to press for a negotiated resolution.