Cabinet rolls out support plan as US tariffs threaten thousands of SA jobs

Minister in the Presidency Khumbudzo Ntshavheni announced on Thursday that the government is setting up an Export Support Desk and launching a Localisation Support Fund to help companies absorb the shock.

 The tariffs, which take  effect  at midnight on Thursday, could cost the country up to 30,000 jobs, according to government officials. 

The South African Reserve Bank has warned that as many as 100,000 jobs could be at risk in a country already grappling with an unemployment rate above 30%.

Sectors expected to bear the brunt of the tariff increase include agriculture, automotive, and textiles.

 However, about 35% of South African exports – including copper, pharmaceuticals, semiconductors, lumber products, and critical minerals – are exempt.

Ntshavheni said Cabinet has also approved a broader suite of interventions to support businesses and workers. 

These include export competitiveness support, working capital assistance, and coordination with the Competition Commission to allow exporters to collaborate under a temporary block exemption.

 A draft version of the exemption is expected to be published by the end of the week.

“As communicated through the Presidency, President Ramaphosa has reached out to President Trump via a phone call yesterday morning, as part of bolstering South Africa’s negotiation efforts on the trade agreements,” said Ntshavheni.

She emphasised that the government remains focused on growing the economy to save and create jobs. 

This includes intensifying efforts to diversify exports and strengthen South Africa’s position in global supply chains, while expanding access to markets in Asia, Europe, the Middle East, and across the African continent.

“Specific to industries impacted by the tariff increase, the government is focusing on demand-side and targeted interventions to ensure industry stability and safeguard employment,” she said.

Ntshavheni confirmed that the Cabinet has received a draft framework deal from the United States, which includes a provision that the tariffs will be reviewed once a trade agreement is reached between the two countries.

“Cabinet affirmed the government's commitment to finding constructive and sustainable solutions through continued engagements with the United States of America, including at a presidential level,” she said.

The support programme announced includes the creation of an Export Support Desk to serve as a direct point of contact for affected companies, and measures to help businesses absorb the impact while building long-term resilience.

 The Localisation Support Fund will provide financial relief, while the Export and Competitiveness Support Programme will offer access to working capital and equipment for businesses facing short to medium-term needs.

Government is also working with the Department of Employment and Labour to mitigate potential job losses using existing support instruments. 

The aim, according to Ntshavheni, is to protect jobs, maintain productive capacity, and help industries adjust in the face of this external economic pressure.

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