US Tariffs on South African Goods: A Call for Supply Chain Reinvention

By Dr Ernst van Biljon, Head Lecturer and Programme Coordinator MCom in Supply Chain Management, IMM Graduate School
A Seismic Shift in Trade Relations
The recent imposition of a sweeping 30% tariff by the United States on “any and all South African products”, effective 1 August, is far more than a diplomatic spat; it is a seismic event poised to send ripple effects through global and South African supply chains, demanding an urgent re-evaluation of supply chain strategies. While global markets have always been dynamic, this escalation signals a deeper shift: the weaponisation of trade policy as a geopolitical tool.
The Global Supply Chain Response
From a global perspective, these tariffs immediately compel US-based importers and retailers to de-risk their supply chains. The 30% duty instantly inflates the cost of South African goods, making them less competitive on American shelves. This is not just about price; it is about the very viability of product lines.
Supply chains in the US will face pressure to absorb costs, pass them to consumers, or seek alternative sourcing. This could accelerate trends towards ‘friend-shoring’ or ‘near-shoring’, where companies prioritise suppliers in politically aligned or geographically closer nations. The ability to guarantee consistent product availability and predictable pricing, even if it means re-evaluating long-standing supplier relationships, will become a key differentiator.
Furthermore, the tariffs could trigger a global re-routing of goods. South African products previously destined for the US might now seek new markets, potentially increasing supply in other regions and creating new competitive dynamics.
Strategic Imperatives for South African Businesses
South African businesses cannot simply ‘find new markets’ or pivot messaging; they need to reimagine their entire value chain strategies. This means investing in regional value chain integration, leveraging SADC, BRICS, and AfCFTA frameworks, and accelerating partial local beneficiation to improve resilience.
For South Africa, the implications are immediate and profound. Businesses, particularly those in export-heavy sectors like agriculture, must urgently identify and cultivate new international markets beyond the US. This requires intensive market research, and in the case of China, considerable persistence, to understand new consumer preferences and to tailor product offerings and brand narratives for diverse audiences in Asia, the Gulf, and within the African continent.
Sectors in the Spotlight
Specific sectors such as citrus, wine, nuts, and automotive components are directly in the crosshairs. Producers in these industries should consider building capacity for processing at source and establishing stronger ties with fast-growing Asian and Middle Eastern markets.
The US offer to waive tariffs if companies “build or manufacture a product within the United States” presents a stark choice. While some large corporations might consider this, it threatens to hollow out local manufacturing capabilities and job creation. From a domestic supply chain standpoint, this situation could galvanise ‘Buy Local’ campaigns, fostering national pride and consumer loyalty towards South African-made goods to bolster internal demand.
Building Resilience through Regional Integration
In addition, companies should assess opportunities to increase local supplier development and upstream integration to reduce reliance on single-market exports. Strengthening links with regional and Asian supply partners can enhance both resilience and cost competitiveness.
The true opportunity is not in survival but in transformation — future-proofing South Africa’s role in global supply chains through strategy, value creation, and new market development.

Dr Ernst van Biljon is the Head Lecturer and Programme Coordinator for the Master of Commerce in Supply Chain Management at the IMM Graduate School. With a wealth of academic expertise and industry experience, Dr van Biljon specialises in global trade dynamics, supply chain strategy, and the integration of advanced technologies in logistics and manufacturing. His research and teaching focus on equipping professionals to navigate disruption and build resilient, future-ready supply chains.