Categories: News

Tariffs Push South Africa Toward China

 

African nations are being pushed toward a major realignment in global trade as a result of high tariffs imposed by the United States under former President Donald Trump. With steep duties hitting exports from countries such as South Africa, Algeria, Libya, and Tunisia, many African economies are turning to China as a more receptive trade partner.

Trump’s tariff policy, designed to target nations with trade surpluses over the U.S., has ended up affecting several African economies disproportionately. In the most recent update, 22 African countries faced export tariffs ranging from 15% to 30%. Some of the hardest-hit economies include South Africa and Lesotho—nations already facing domestic economic stress.

China Steps In as Trade Partner of Choice

With African leaders looking for solutions, China has seized the opportunity to strengthen its economic ties with the continent. In June, Beijing announced it would waive tariffs on imports from nearly all African countries, a move seen as a strategic counter to the United States’ aggressive trade stance.

For many African policymakers and economists, this is more than just opportunistic diplomacy. China has long been investing in infrastructure, mining, and agriculture across Africa. Now, it is offering economic relief just as U.S. policy isolates key African industries. As South African analyst Neo Letswalo put it, “This is a moment for Africa to deepen South-South trade and position China as a new global partner.”

Still, some warn that a shift toward China isn’t risk-free. While Chinese investment is welcomed, concerns remain about imbalanced trade. Africa often exports raw materials and imports finished goods from China, leading to structural trade deficits. Letswalo cautions that without careful planning, local industries could be undercut by cheaper Chinese imports.

Economic Strain Across the Continent

The consequences of the U.S. tariffs are already being felt. Lesotho, a small landlocked country surrounded by South Africa, had relied heavily on duty-free exports to the U.S., especially in textiles. With the new 15% tariff (down from an earlier proposed 50%), the government has declared a two-year national disaster due to the damage to its manufacturing sector.

South Africa’s citrus industry is also at risk. The Citrus Growers’ Association warned that thousands of jobs are threatened as crates of fruit prepared for U.S. markets may now go unsold due to added costs. Other sectors, such as automobile manufacturing, are bracing for potential investment withdrawals, worsening an already severe unemployment crisis.

In response, South African officials are exploring new trade routes and expanding relationships beyond the U.S. Gwede Mantashe, the country’s Minister of Mineral Resources, noted that China has overtaken the U.S. as South Africa’s largest trade partner, and that broader diversification is now a national priority.

The Future: Diversification and Regional Unity

Some African leaders see this moment as a chance to rethink their global trade dependencies. There’s renewed urgency around implementing the African Continental Free Trade Area (AfCFTA), which aims to increase intra-African commerce. Despite being launched in 2020, progress has been slow, with fewer than half of African countries actively trading under its framework.

Economist Bismarck Rewane sees an opportunity amid the challenges. “These tariffs could be the push South Africa needs to become more self-reliant,” he said. “Our future lies in strengthening internal markets and reducing dependency on external powers.”

Assin Malek

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