South Africa must urgently negotiate a new bilateral trade agreement with the United States to safeguard key export sectors and navigate shifting geopolitical tensions, according to Dr Stavros Nicolaou, Trade Lead of the BRICS Business Council’s South African chapter. His warning comes as the US implements a new 30% tariff on South African goods, alongside a broader global 10% levy on imports – moves that could significantly erode South Africa’s trade advantage.
In an interview with Business Report, Independent Online’s financial publication, Nicolaou said the threat to South Africa’s trade relationship with the US — and in particular its access to duty-free benefits under the African Growth and Opportunity Act (AGOA) requires an immediate and strategic diplomatic response.
“If AGOA is hanging by a thread, the logical thing to do here is to conclude a completely new trade deal,” Nicolaou told Business Report Executive Editor Philippa Larkin in an article published on 14 April 2025. The United States accounted for R156.9 billion in South African exports in 2024, or roughly 7.7% of total export value including vehicles, platinum, and citrus.
Nicolaou emphasised the need for pragmatism over ideology, arguing that South Africa must remain globally engaged rather than aligning too rigidly with any one in BRICS. He suggested that trade-offs such as offering critical minerals in exchange for tariff exemptions could help preserve jobs in vulnerable sectors like automotive manufacturing.
“We need to ensure our people are fed,” he said, pointing to the necessity of growth, poverty alleviation, and global investment. He also called for strengthening ties with the EU and new partners such as Saudi Arabia, while urgently addressing domestic infrastructure, energy, and logistics to make South African exports more competitive.
