BUSA calls for coordinated action against US tariffs and AGOA challenges
Business Unity South Africa (BUSA) calls on SA government to act amid economic threats as a result of USA tariffs
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Business Unity South Africa (BUSA) has called on the South African government to take urgent, coordinated action in response to the new US import tariff and mounting uncertainty over the African Growth and Opportunity Act (AGOA).
BUSA expressed concern over the implementation of broad-based import duties by the US and proposals to introduce reciprocal tariffs on countries running trade surpluses with the US, including South Africa.
BUSA CEO Khulekani Mathe said the delay in finalising a framework agreement between South Africa and the US to address the proposed 30% tariff is “particularly troubling.”
Mathe noted that countries such as the UK, Japan, Pakistan, South Korea, the Philippines, Indonesia, and blocs like the European Union had already secured trade deals with the US that reduced or eliminated the original 30% tariff.
“This demonstrates that there is an opportunity for a successful agreement to be reached even after 1 August 2025,” BUSA said, “provided the country adopts a coordinated approach and prepares a solid offer based on what we can realistically deliver in response to US expectations.”
The organisation said the US remains a key trade and investment partner for South Africa, and the AGOA trade preferences have underpinned the relationship for over two decades, supporting key export sectors such as agriculture, automotive manufacturing, and mining.
BUSA warned that the impact of the new tariff on local industries would be “substantial.” In the automotive sector, South African exports to the US amount to approximately R24.1 billion. These exports are already subject to a 25% tariff under Section 232, and the proposed 30% hike could push total duties to 55%.
According to BUSA, “approximately 20,000 jobs are at risk in this sector,” including jobs at original equipment manufacturers and component suppliers.
In the agriculture and agro-processing sectors, about 15,000 to 20,000 jobs are also threatened. Citrus and nut exports, valued at R4.2 billion and currently duty-free under AGOA, could become uncompetitive due to price increases triggered by the tariffs.
“There is a significant risk of trade being diverted to other regions, such as South America and the European Union,” BUSA added.
In the mining sector, about 5,000 jobs are at risk, with diamond beneficiation and iron ore exports likely to be negatively affected.
BUSA said mitigation measures for these sectors must be incorporated into the government’s response and that sector-specific proposals should form part of the framework deal currently under discussion.
Mathe described the tariff changes as “a strategic inflection point” and said South Africa must “continue to engage the US administration on existing access while building new capabilities, new markets, and a more resilient trade architecture.”
“We view this as a pivotal moment for South Africa’s trade strategy,” he said.
BUSA reaffirmed its support for the government’s efforts to reach a trade agreement with the US that safeguards jobs and advances national economic interests.