The tariffs imposed by the United States (US) on South Africa could put around 100,000 jobs at risk, particularly in the agriculture and automotive sectors. The warning was issued this Wednesday (16th) by the Governor of the South African Reserve Bank, Lesetja Kganyago.
According to the governor, the 30% tariffs, set to take effect on August 1st, may cause significant damage in specific sectors. “The impact on agriculture could be quite devastating because agriculture employs many low-skilled workers,” he stated.
Lesetja Kganyago emphasized that the most affected products would be citrus fruits, table grapes, and wines. Since the agriculture sector mainly employs low-income workers, it is among the most vulnerable to the new tariffs imposed by Washington.
“The employment impact could be around 100,000 jobs, and that’s what we’re facing,” the governor warned, stressing the importance of finding alternative solutions to mitigate the effects on the economy.
The situation is even more concerning given South Africa’s high unemployment rate. In the first quarter of this year, the official rate stood at 32.9%, while the broader definition reached 43.1%. Meanwhile, farmers’ associations have already expressed concern over the impact of tariffs on products like citrus fruits, grapes, wine, fruit juices, and ostrich leather, which heavily depend on exports to the US.
In the citrus sector alone, the new tariffs threaten 35,000 jobs and could devastate local economies, such as that of Citrusdal, in the Western Cape, which relies primarily on exports to the U.S. market.
Source: SABC News
