New figures released by the South African Reserve Bank show that Germany has moved ahead of the United States to become South Africa’s second-biggest bilateral trading partner after tariffs imposed under President Donald Trump took effect.
According to the reserve bank, the duties announced during Trump’s so-called “Liberation Day” mainly hurt South Africa’s value-added exports. Vehicles and transport-related products, which make up a large portion of the nation’s manufactured exports, were among the hardest affected.
China continues to hold the top spot as South Africa’s leading export market, further expanding Beijing’s economic footprint across Africa. Experts say China’s advantage has grown following the introduction of a tariff-free trade arrangement this month that allows South African products easier entry into the Chinese market.
The development underscores increasing tension in commercial relations between Pretoria and Washington, with ties worsening over a number of political and diplomatic disagreements.
US authorities have expressed concern over South Africa’s relationship with the BRICS alliance, its genocide case against Israel at the International Court of Justice, and what American officials view as stronger links with Iran.
The reserve bank noted that products with added manufacturing value suffered the greatest damage from the tariffs, with the automotive industry taking the biggest blow.
Germany’s improved standing points to wider shifts in international trade patterns as exporters look for more predictable destinations amid uncertainty over US tariff decisions.
Still, the United States may reclaim its former ranking if the US Supreme Court decision striking down the levies results in the measures being withdrawn.