Ramaphosa Says Trade Is Being “Used as a Weapon”

South African President Cyril Ramaphosa has warned that global trade is increasingly being “used as a weapon” after the United States imposed steep tariffs on South African exports. Speaking at the United Nations in New York, he pressed for tariff relief, the renewal of the African Growth and Opportunity Act (AGOA), and greater predictability for developing economies, while Pretoria courts alternative partners such as China.

U.S. Tariffs and Economic Pressure

In August, the U.S. government levied 30% tariffs on a wide range of South African products, citing discriminatory laws in the country. The move has rattled Pretoria, where officials warn of dire consequences across key industries. Analysts caution that the new duties could trigger widespread job losses in manufacturing, agriculture, metals and related sectors, exacerbating already high unemployment levels. Business groups have urged urgent talks with Washington to avoid what they describe as a destabilizing policy shock.

AGOA’s Uncertain Fate

The African Growth and Opportunity Act (AGOA)—a cornerstone of African trade with the U.S.—is set to expire at the end of September 2025, and its renewal remains stalled in Congress. The program has provided duty-free access to U.S. markets for dozens of African countries and has been particularly important for South Africa’s auto, textile and agricultural exports. Without renewal, officials warn, exports from key industries could shrink sharply, jeopardizing employment and investment planning.

For Pretoria, the uncertainty around AGOA compounds the strain created by tariffs, raising fears of reduced competitiveness at a time when global trade flows are already fragile.

Pivoting Toward China and Diversification

With U.S. trade ties fraying, South Africa is expanding its outreach to China. At a recent bilateral investment conference, Chinese companies pledged billions of dollars for projects in mining, energy and infrastructure. Officials in Pretoria portray the shift not as an abandonment of U.S. markets but as a pragmatic strategy to diversify trade partners and reduce dependence on any single economic bloc.

Analysts note this pivot reflects broader geopolitical currents, with many middle-income economies seeking to shield themselves from U.S.–China rivalry by securing multiple avenues for investment and market access.

Domestic and Global Repercussions

At home, farmers have raised alarm over the citrus industry, warning that higher tariffs could devastate rural employment and export revenues. Similar concerns echo across the metals and auto sectors, where the U.S. remains a top destination for South African goods.

Globally, the tariffs have reinforced worries about policy-driven volatility in trade, particularly for export-dependent economies. The European Union, facing its own disputes with Washington, is reportedly working to reopen discussions over reciprocal tariffs on metals and industrial goods. Observers suggest that these EU–U.S. talks could serve as a reference point for South Africa’s negotiations, potentially offering Pretoria a path to relief.