Ramaphosa and Trump Lock Horns Over U.S. Tariffs in High-Stakes Call

President Cyril Ramaphosa has personally intervened in South Africa’s escalating trade row with the United States, phoning U.S. President Donald Trump on Wednesday to address sweeping new tariffs that threaten to disrupt key sectors of the economy.

The tariffs — a hefty 30% on a range of South African goods — came into effect on Thursday, targeting industries from automotive manufacturing to agriculture. Government officials warn the move could put 30,000 local jobs at risk, while business leaders report immediate financial losses, including one company that says it has already lost R750 million in contracts.

During the call, both leaders agreed to keep trade negotiations alive, but there was no indication of an immediate resolution. Ramaphosa’s office described the discussion as “frank but constructive,” while Trump publicly boasted that the tariffs would bring “billions” into the U.S. economy.

Economic Shockwaves

South Africa’s central bank has downplayed the broader economic fallout, predicting only a 0.1 percentage point hit to GDP growth and little inflationary pressure. Still, the bank acknowledged the tariffs will hurt certain industries disproportionately.

The wine sector — a major employer with around 270,000 jobs — faces one of the harshest blows, with exporters warning that the sudden 30% tariff could price South African wines out of the U.S. market. Industry groups say orders are already being cancelled, and pivoting to alternative buyers will take time.

Political Undercurrents

The trade dispute is also feeding into domestic politics. The Democratic Alliance (DA) has claimed the U.S. may not budge unless South Africa revisits race-based economic policies such as Black Economic Empowerment (BEE), a suggestion the ANC has firmly rejected.

Behind the scenes, Trade Minister Parks Tau confirmed that cabinet has approved a revised trade proposal to present to Washington. At the same time, agriculture officials are accelerating talks to expand exports to other markets — including a push to finalise stone fruit exports to China by the upcoming G-20 summit.

The Road Ahead

While the phone call may have kept the diplomatic door open, the tariffs remain in force. With affected industries already feeling the pinch, the coming weeks will test South Africa’s ability to negotiate relief — or pivot quickly to new trade partners.