Cape Town – South African investors have been urged to avoid hasty decisions amid heightened global uncertainty following the announcement of new US tariffs, including a 30% surcharge on South African goods.
According to Daily Investor, Morningstar South Africa’s Roné Swanepoel said the tariffs, announced by US President Donald Trump during his Liberation Day address, could lead to short-term market volatility but should not deter investors from their long-term strategies.
The tariffs include a 10% base rate on all countries, with higher rates for nations with significant trade surpluses with the U.S. South Africa was hit with the additional 30% due to its trade balance.
While some local exports are exempt due to their classification as critical minerals, Swanepoel warned of broader economic impacts, including increased global inflation, slower GDP growth, and a higher risk of recession, especially if other countries retaliate.
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Swanepoel noted that despite the uncertainty, tariffs are only one of many factors affecting economic performance. She advised investors to stay diversified, monitor sectors affected by trade changes, and avoid locking in losses during market dips. Those with retirement savings should keep their capital invested to preserve long-term growth through compounding.
Last month, President Cyril Ramaphosa addressed the recent imposition of tariffs by the US and emphasised the sovereignty of both nations.
The move significantly impacts key South African exports, including vehicles, precious metals, machinery, and citrus products.
“The United States, like any other country, is a sovereign country and they are entitled to take decisions in whichever way they want to. Like ourselves, we are a sovereign country and can decide on any matter that has to do with our international dealings with others. And so, it is within our right, as it is within their right,” the president said.
[WATCH] “The U.S. is a sovereign state that is entitled to take decisions, as is South Africa.” – ANC President Cyril Ramaphosa, responding to the U.S. tariff decision during a media briefing in Chiawelo, Soweto, GP.#ANCRenewal #ANCRenewalInAction pic.twitter.com/0J1vxQ4NIR
— ANC – African National Congress (@MYANC) April 6, 2025
“They have imposed tariffs and we are examining the impact of those tariffs on us. And as the minister of trade and industry has said, we will be able to state what our position is. So in the end, those are matters that we are going to continue dealing with in a very responsible and very very proper manner. And we are not a government that would just act out of spite… we are not a government that will act out of emotions. Everything that we do, we examine very carefully and look at the implication and the impact.”
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Compiled by Betha Madhomu
