President Cyril Ramaphosa and US President Donald Trump held a telephone meeting on Wednesday, 6 August 2025, to discuss trade issues between the two countries.
Ramaphosa, Trump discuss trade ahead of US tariffs coming into effect
The conversation took place just one day before new US tariffs officially take effect.
According to the Presidency, the two leaders agreed to continue with further engagements and instructed their trade negotiation teams to take discussions forward.
The tariffs, signed by President Trump on 31 July 2025, will apply from Friday, 8 August, and are part of a wider trade policy impacting several countries, including South Africa.
What the new US tariffs mean for South Africa
A tariff is a type of tax placed on goods imported from another country. In this case, the United States will apply a 30% tariff on certain South African imports.
This means US companies will have to pay more to bring South African products into their market, making these goods more expensive and less competitive.
The South African government has warned that these tariffs could hurt the economy.
They say exports will likely decrease, the value of the rand may fall, and local spending could slow down.
Economists estimate that the tariffs could reduce South Africa’s economic growth by 0.2%.
Though some sectors—such as pharmaceuticals and minerals—will remain exempt, other industries are expected to feel the pressure.
Nedbank, in an interview with BusinessTech, expressed concern about how US-linked retail brands operating in South Africa may be affected.
Karen Keylock, head of Retail Services at Nedbank, said brands like McDonald’s, Burger King, and Starbucks may struggle if they can’t import goods or are forced to raise prices.
“If brands can’t maintain supply or raise prices, they may limit expansion or exit the market altogether,” Keylock said.