How the 2025 US Tariffs Impact South Africa – What Investors Need to Know

On 5 April 2025, the United States government introduced a wide-ranging tariff package dubbed “Liberation Day”, which includes:

  • A 10% baseline tariff on all US imports

  • A 25% tariff on foreign-manufactured vehicles

  • Country-specific tariffs on nations the US views as having unfair trade barriers

Of significant concern to South African exporters is a newly announced 30% tariff on South African exports to the US, set to begin on 9 April 2025. However, critical commodities such as gold and platinum have been excluded, which provides some immediate relief for local industries. This is crucial given that over 50% of South Africa’s exports to the US are in precious metals.

South Africa and the New US Tariffs – Key Risks and Opportunities

The 30% tariff poses risks for various sectors in South Africa, particularly agriculture, automotive parts, and manufactured goods, which may now face reduced competitiveness in the US market. The exemption of gold and platinum softens the blow, but broader economic implications remain.

These developments reinforce the importance of:

  • Diversifying South Africa’s export markets, especially through opportunities within the African Continental Free Trade Area (AfCFTA)

  • Monitoring rand volatility against the US dollar

  • Strengthening local value chains to reduce external dependency

From an investment perspective, the tariffs highlight the need for globally diversified portfolios and a disciplined investment approach.

2025 US Tariffs and Financial Markets – What Investors Should Expect

Just like during previous US trade policy shifts, markets reacted swiftly. Since the announcement:

  • Investors have shown a “risk-off” response, exiting/selling risk assets like equities

  • The US dollar weakened, and capital flows rotated toward Europe and China

  • Short-term volatility increased, but opportunities have also emerged in select regions

These dynamics present a chance for active asset managers to reposition portfolios and capitalize on mispriced assets or geographic dispersion in returns.

Why South African Investors Need Global Diversification in 2025

Given the uncertainty surrounding US-South Africa trade relations, investors with concentrated exposure to specific sectors or geographies may experience increased risk. Our approach is built around:

  • Global diversification, including exposure to developed and emerging markets

  • Risk-managed, actively managed portfolios tailored to your long-term goals

  • Tactical asset allocation that adjusts to global economic shifts

We work with seasoned investment managers who are equipped to navigate local and global market movements while protecting and growing your wealth.

Long-Term Strategy – Staying Invested Through Market Volatility

Periods of market stress often cause investors to react emotionally. However, selling during downturns locks in and realizes losses, while staying invested increases the likelihood of capturing the recovery.

Our advice to clients:

  • Trust the construction and balance of your portfolio

  • Avoid reactionary decisions based on short-term news

  • Maintain a long-term view supported by expert management

Our Commitment to South African Investors During the 2025 Tariff Cycle

We understand that geopolitical shifts like the 2025 US tariffs can raise concern. That’s why our team is actively analyzing the implications of these new trade barriers and adjusting strategies where necessary.

Our commitment is to:

  • Monitor global trade and currency movements daily

  • Make evidence-based investment decisions for your benefit

  • Continue to build resilient, globally diversified investment portfolios

Speak to our Financial Advisors and Planners

If you’re concerned about how the 2025 US tariffs on South Africa could affect your investment portfolio or business exports, now is the time to speak to us.