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.

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.

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A US House committee is set to consider a three-year extension of the African Growth and Opportunity Act on Wednesday, after it lapsed in September. However, South Africa risks being left out due to ongoing trade tensions with the Trump administration. The initiative, vital for African exports, has supported hundreds of thousands of jobs across the continent.

In a 6-3 decision, the US Supreme Court has struck down President Donald Trump's sweeping global tariffs imposed under the International Emergency Economic Powers Act, citing lack of congressional authorization. The ruling triggered a relief rally in financial markets, including a brief spike in Bitcoin to $68,000, though gains faded amid ongoing uncertainties. President Trump responded by announcing a new 10% global tariff under Section 122.

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After the Trump administration announced a $12 billion aid package to offset the impact of new tariffs, Black farmers at the National Black Growers Council conference in New Orleans expressed relief but pressed for faster payments amid squeezed profits and longstanding challenges, according to NPR.

The US Supreme Court ruled that President Donald Trump's tariffs imposed under the 1977 IEEPA law were unlawful. Hours later, Trump signed an executive order imposing a 10% global tariff on all countries under Section 122 of the 1974 Trade Act. The tariff will take effect almost immediately and last for 150 days.

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Following the US Supreme Court's ruling against President Trump's IEEPA tariffs, his subsequent 15% global tariffs under alternative authority provide India new leverage in US trade talks, potentially aligning with its India-EU FTA ambitions.

 

 

 

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