South Africa's agricultural sector to benefit from scrapped US tariffs, analyst says

The US Supreme Court has ruled that many tariffs imposed by President Donald Trump are illegal, including a 30% levy on South African goods. Agricultural economist Thabile Nkunjana states this could provide significant relief to South Africa's farming industry. Exports to the US had plummeted due to these tariffs.

The US Supreme Court recently ruled that numerous tariffs enacted by President Donald Trump last year are unlawful. Among these is a 30% tariff applied to imports from South Africa, which has strained the country's agricultural exports.

Thabile Nkunjana, an agricultural economist, highlighted the potential positive impact on South Africa's sector if the ruling leads to the tariffs being scrapped. She noted that while the extension of the African Growth and Opportunity Act (AGOA) has offered some benefits, many agricultural products continue to encounter high barriers in the US market.

"The reality is that for South Africa, this will bring some serious relief, especially given the data itself. Because we saw that our exports to the US, they plummeted significantly. So, therefore, those tariffs were really beginning to put on some pressure and that we are even expecting even more for 2026. But now this kind of changes that," Nkunjana explained.

This development comes amid broader trade tensions, with South African exports to the US experiencing a sharp decline. The ruling, if implemented, could ease these pressures and support recovery in the agricultural field, which has been anticipating further challenges in 2026.

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Swedish official angrily criticizes US President Trump's 15% tariffs at press conference, with headline graph and Trump inset.
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Sweden slams Trump's 15% tariff hike after Supreme Court ruling

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Swedish economists and officials have criticized US President Donald Trump's escalation of global tariffs to 15% following the Supreme Court's invalidation of his prior levies, citing policy unseriousness and economic uncertainty for exporters. The government plans to assist companies via a hotline and push new trade deals.

The United States has extended the African Growth and Opportunity Act until the end of 2026, but ongoing tariff changes continue to undermine its benefits for African countries. South African exports, particularly automobiles, have suffered significant declines due to these uncertainties. Experts highlight increased unpredictability in US-Africa trade relations.

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U.S. President Donald Trump has signed legislation extending the African Growth and Opportunity Act (AGOA) for one year, retroactive to September 2025, providing duty-free access to the U.S. market for eligible African countries including South Africa. The move offers temporary relief amid strained U.S.-South Africa relations and ongoing tariff disputes. Business leaders in South Africa welcomed the extension for restoring some confidence in bilateral trade.

U.S. President Donald Trump stated on January 20 during a press conference that he is 'anxiously' awaiting a Supreme Court ruling on the legality of his administration's global tariffs. He defended the levies for bolstering national security and federal revenue while noting that a potential refund process in case of a loss could be complicated. The Supreme Court did not issue a decision on the tariff case that day.

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The US Supreme Court annulled most tariffs imposed by Donald Trump under the International Emergency Economic Powers Act (IEEPA) on Friday, in a 6-3 decision limiting its use for trade duties. Hours later, Trump signed an executive order for a 10% global tariff under Section 122 of the Trade Act of 1974, exempting T-MEC products. The measure takes effect on February 24.

The Kenya Association of Manufacturers has urged Nairobi and Washington to fast-track a bilateral trade agreement following the 16-month extension of the African Growth and Opportunity Act. KAM CEO Tobias Alando highlighted the need for a sustainable framework to secure market access for Kenyan exporters. This push comes as Kenya reaps major benefits from duty-free entry to the US market.

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President Donald Trump announced on February 21, 2026, that he would increase global tariffs from 10% to 15%, following a U.S. Supreme Court decision striking down his previous tariffs. The court ruled 6-3 that the International Emergency Economic Powers Act does not authorize such broad import taxes. The move comes amid divided reactions from Republicans and potential refunds of billions in collected duties.

 

 

 

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