Trump’s 30% Tariffs Rock SA’s Auto Industry, BRICS Alignment

(The Post News)- A fresh round of tariffs from U.S. President Donald Trump is set to hammer South Africa’s auto exports and send trade relations with Washington into turbulent waters.

Trump officially informed President Cyril Ramaphosa in a letter that the United States will impose 30% tariffs on all South African goods entering the U.S., effective 1 August. The announcement marks a dramatic escalation in tensions between the two countries, with the U.S. accusing South Africa of long-standing trade imbalances and protectionist policies.

“We have had years to discuss our trading relationship,” Trump wrote, “and have concluded that we must move away from these long-term, and very persistent, trade deficits.” He said the new tariffs are “necessary” to correct what he described as “unsustainable Trade Deficits,” claiming they pose a risk to the U.S. economy and national security.

The move comes just days after Trump warned on his Truth Social platform that any country aligning with the BRICS bloc would face an additional 10% tariff, no exceptions. “Any country aligning itself with the anti-American policies of BRICS will be charged an additional 10% Tariff,” he posted on Monday, 7 July.

South Africa, a founding member of BRICS, has been under scrutiny from Washington for its growing ties with the bloc’s core members, Russia, China, and Iran in particular. The expanded BRICS group, which welcomed the UAE, Egypt, Iran, and Ethiopia in 2024, has drawn sharper lines in global geopolitics, especially as U.S. relations with some of those countries continue to sour.

The auto industry stands directly in the firing line. A 25% tariff on car exports to the U.S. has already been in place since April as part of Trump’s “reciprocal” trade strategy, which pegs tariffs to existing trade deficits. Though this was temporarily eased with a 90-day pause, that grace period is ending, and now a flat 30% tariff looms,
with a potential 10% kicker due to South Africa’s BRICS links.

In his letter, Trump left the door open for a new trade deal, suggesting that South African companies could avoid tariffs by manufacturing within the U.S. “We will do everything possible to get approvals quickly, professionally and routinely,” he wrote.

Trade talks between the two nations are ongoing, but with no agreement signed and the clock ticking, the prospect of further penalties is growing. As the U.S. remains South Africa’s second-largest trading partner, the stakes couldn’t be higher.