South African Central Bank warns of massive job losses due to Trump’s tariffs

South Africa is facing a potential economic crisis as U.S. President Donald Trump’s administration prepares to impose a 30% tariff on South African imports beginning August 1.

The move, aimed at recalibrating trade relationships, could result in the loss of up to 100,000 jobs, according to South African Reserve Bank Governor Lesetja Kganyago.

Speaking on local radio station 702, Kganyago warned that the tariffs would disproportionately affect the agriculture and automotive sectors, two of the country’s key export industries.

“The impact in agriculture could actually be quite devastating because agriculture employs a lot of low-skilled workers. Here the impact is on citrus fruit, table grapes, and wines.”

South African car exports to the United States have already dropped by more than 80% since the Trump administration imposed auto tariffs in April.

Kganyago described the trend as “very concerning,” noting that without alternative trade measures, the job losses could be severe.

“If we do not find alternative measures, the impact on jobs could be around 100,000”.

Farmer groups have echoed the central bank’s concerns, warning that the tariffs threaten producers of citrus, macadamia nuts, grapes, wine, fruit juices, and ostrich leather. In the citrus sector alone, an estimated 35,000 jobs are at risk, with towns like Citrusdal in the Western Cape particularly vulnerable due to their reliance on U.S. exports.

South Africa already grapples with one of the highest unemployment rates globally.

The official rate stood at 32.9% in the first quarter of 2025, with the expanded definition including discouraged job seekers—reaching a staggering 43.1%.

The looming tariffs could exacerbate this crisis, pushing more families into economic hardship and threatening the stability of rural communities.

South African officials are reportedly engaging with U.S. counterparts to seek exemptions or negotiate alternative trade arrangements.