JOHANNESBURG - The United States 30% import tariff on South African exports, will kick in on Thursday.
The South African Metals and Engineering Sector relies on the United States for approximately 8% of its total output.
According to a SEIFSA survey a significant number of respondents reported that the new tariffs would have severe and immediate consequences for their businesses.
Respondents warned the additional costs could lead to job losses.
Have the markets shrugged off the tariffs which have been implemented?
The JSE like European and Asian markets is trading in the green with gains across most of the local market.
Kea Nonyana, Head of Scope Prime Africa unpacked the market movements of the day.
The implementation of new US trade tariffs is forcing many countries, including South Africa, to reconsider their trade relationships with the world's largest economy.
Experts believe that being part of the BRICS economic bloc could help absorb some of the trade pressure.
The 30% tariffs are a major concern for South Africa, which counts China, the United States, and Germany among its top export partners.
Experts are warning that these tariffs could shave 0.2% off the country's economic growth and severely disrupt the manufacturing and agricultural sectors, which are vital for employment and stability.
Doctor Khwezi Mabasa from the Centre for Researching Education and Labour (REAL) at Wits University and Professor Patrick Bond, UJ Distinguished Professor of Sociology and Director of the Centre for Social Change discussed this with eNCA.
As new US trade tariffs take effect, many South Africans are still unclear about the potential impact on their businesses and daily lives.
To address this, the South African Youth Trade Association has launched a new, free online service.
The service delivers up-to-the-minute information on tariffs, free trade agreements, and import/export regulations between any two countries.
President of SA Youth Trade Association Luyolo Dwesi explained what tariffs are and how they work, for beginners.