Incoming US tariffs to cut jobs in South Africa

By Mark Ogagan

Economic analysts have predicted that the soon-to-be-imposed US tariffs will shake up South African exporters.

For years, the African Growth and Opportunity Act (AGOA), has provided South African agricultural products preferential access to the US market.

However, the uncertainty surrounding AGOA’s future and the new tariffs threaten to unravel years of progress.

The agriculture and automotive sectors are mostly likely going to be the ones that are going to be greatly affected by the tariffs that are expected to kick in on 1st of August.

Experts say the country cannot be surprised if it sees a shutdown of big automative manufacturing plants due to the fact that the US is such a major market vehicles like BMW and Mercedes. This means workers will be laid off as job losses will definitely take place.

While President Ramaphosa says South Africa needs to mine new markets when the US tariffs kick in, experts suggest this won’t happen overnight.