SA to continue US tariff talks following 12.5% levy

Source: ©soleg via 123RF

The USTR imposed tariffs on products from 60 economies following Section 301 investigations into countries' failure to impose and effectively enforce a prohibition on the importation of goods produced using forced labour.

South Africa is among the 41 economies that the USTR says do not impose and effectively enforce prohibitions on the importation of goods produced using forced labour.

As a result, South Africa will be subject to a 12.5% tariff. The remaining 19 economies found to have laws prohibiting the importation of goods produced using forced labour will be subject to a 10% tariff.

Trade, Industry and Competition Minister Parks Tau said: “It is important to indicate that products already subjected to Section 232 tariffs such as automobiles and auto components, and steel and aluminium, are exempted from the Section 301 tariffs.

“The USTR also published a list of products that will be exempted from the Section 301 tariffs, and these are listed under Annex I and Annex II of the Federal Register.”

Some of the exempted products of export interest to South Africa include, among others, macadamia nuts, oranges, limes, tea, spices, seeds, cane sugar, orange and lime juice, syrups, chemicals, critical minerals, platinum-group and precious metals, isotopes, civil aircraft and parts and components, and pharmaceuticals.

Engagements to continue

The decision follows numerous written submissions by the South African government, organised labour and the South African private sector, as well as extensive consultations with the office of the USTR in May 2026 and testimony by the South African government at the public hearing held by the US Section 301 Committee earlier this month.

“South Africa has indicated that it will be publishing a notice in the Gazette requesting public comments on the intent to issue a regulation to prohibit goods produced in whole or in part using forced labour and child labour.

“Government will continue to engage with the USTR on the Section 301 tariffs with a view to either eliminating or reducing the current tariff imposed on our country,” Tau said.