Cape Town – South Africa is facing a potential jobs bloodbath and economic crisis as US tariffs on its exports, particularly in the agriculture and automotive sectors, continue to bite, with job losses estimated to reach 100,000, according to South African Reserve Bank Governor Lesetja Kganyago.
According to SABC News, speaking to a local radio station on Wednesday, Kganyago warned that the 30% tariff set to take effect from August 1 could deliver a devastating blow to sectors already under strain, especially agriculture, which employs a large number of low-skilled workers.
Products such as citrus fruit, table grapes, and wines are directly in the firing line.
“The impact in agriculture could actually be quite devastating because agriculture employs a lot of low-skilled workers, and here the impact is on citrus fruit, table grapes and wines,” the report quoted Kganyago as saying.
The automotive industry, a cornerstone of the South African economy, is already reeling, Daily Investor reported, adding that in the first half of 2025, exports to the United States dropped by 82% compared to the same period last year.
This collapse has been driven by a 25% US tariff on all imported automotive components, imposed in April.
South Africa already struggles with the world’s highest unemployment, with official joblessness at 32.9% and broader definitions placing it at 43.1%.
Without an urgent resolution through trade talks with the US, the combined effect of these tariffs could push many communities and sectors over the edge.
“If we do not find alternative measures the impact on jobs could be around 100 000, so that is what we actually face,” Kganyago said.
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Compiled by Betha Madhomu
