Trump’s letter to Ramaphosa included incentives and warnings, offering tariff exemptions for companies that relocate manufacturing to the US.
President Cyril Ramaphosa has contested the United States’ justification for imposing a 30% trade tariff on South African goods, describing the percentage as inaccurate and based on a flawed interpretation of trade data.
The dispute emerged after President Donald Trump announced the unilateral tariff imposition in correspondence received by South Africa on Monday.
South Africa was among several countries to receive similar communications from the US administration, signalling a broader shift in American trade policy.
The tariff, set to take effect on 1 August 2025, represents a significant escalation in trade tensions between the two nations and threatens to disrupt established commercial relationships.
Ramaphosa challenges trade data interpretation
Ramaphosa’s administration has directly challenged the American interpretation of bilateral trade figures that formed the basis for the 30% tariff decision.
According to Ramaphosa, the contested interpretation is currently under review by negotiating teams from both countries.
“South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data,” Ramaphosa stated in his response.
The president provided alternative figures, stating that South Africa’s average tariff on imported goods stands at 7.6%, significantly lower than the American characterisation.
The South African government emphasised that 56% of goods entering the country face zero tariffs under most-favoured-nation status, with 77% of US goods entering the South African market duty-free.
These statistics form the cornerstone of South Africa’s argument against the American trade deficit claims.
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Trump’s ultimatum and conditions
In his letter to Ramaphosa, Trump framed the tariff as a necessary correction to what he described as persistent trade deficits caused by South African policies.
The American president characterised the relationship as “far from reciprocal” and positioned the 30% tariff as a measured response to years of unsuccessful negotiations.
“Starting on 1 August 2025, we will charge South Africa a Tariff of only 30% on any and all South African products sent into the United States, separate from all Sectoral Tariffs,” Trump wrote.
He emphasised that the percentage was “far less than what is needed to eliminate the trade deficit disparity we have with your country.”
Trump’s correspondence included both incentives and warnings, offering tariff exemptions for companies that relocate manufacturing to the US while threatening additional penalties for any retaliatory measures.
“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge,” the letter stated.
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Diplomatic engagement and framework proposals
Despite the tariff announcement, both nations have indicated a willingness to continue negotiations.
Ramaphosa said South Africa has been actively pursuing diplomatic solutions, including recent engagements during the US-Africa Summit in Luanda on 23 June 2025.
During these discussions, South Africa learned of a template the US wishes to use for engaging sub-Saharan African countries on trade matters.
The South African negotiating team is still awaiting this template, but Ramaphosa has instructed his team to urgently engage with the US based on a Framework Deal submitted by South Africa on 20 May 2025.
This framework specifically addresses American concerns about South Africa’s alleged trade surplus, unfair trade practices, and lack of reciprocity.
“South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States,” Ramaphosa affirmed.
However, he still “welcomed” the US commitment that the 30% tariff remains subject to modification following successful negotiations.
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Economic diversification strategy
In response to the trade pressure, Ramaphosa has called for accelerated economic diversification efforts to strengthen both global supply chains and South Africa’s economic resilience.
The president urged government trade negotiation teams and South African companies to intensify their diversification strategies as a protective measure against future trade disputes.
Implications for future Trump-Ramaphosa relations
The tariff dispute occurs against the backdrop of evolving US-Africa trade relations under the Trump administration.
The American president’s letter emphasised the “strength and commitment” of the trading relationship while simultaneously imposing punitive measures, creating a complex diplomatic dynamic.
Trump’s correspondence concluded with an offer of flexibility, stating that tariffs “may be modified, upward or downward, depending on our relationship with your country.”
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