How the US tariffs affect you as a South African businessman

If you’re a South African businessman—whether you’re running a small export firm, supplying parts to manufacturers, or even just operating a logistics or retail service near a major plant—you may think international trade wars have nothing to do with you. But in today’s interconnected world, when the US imposes tariffs on South African goods, the pain trickles all the way down to your business.

It Starts With Lost Contracts, But It Doesn’t End There

Let’s start with the big picture. Recently, Jendamark Automation, a major South African manufacturer based in Gqeberha, lost a R750 million contract because US tariffs made South African products less competitive. These tariffs—ranging from 5% to 30%—weren’t just symbolic gestures. They essentially made South African goods too expensive for US buyers.

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But what does that have to do with you?

If you’re a supplier, Jendamark might have been one of your key clients, directly or indirectly. Maybe you make precision components, handle welding jobs, supply safety gear, or offer maintenance services. Suddenly, that work dries up. If you’re a logistics provider, there are fewer products to move, fewer containers to ship, and fewer invoices to send. If you run a cleaning company or a catering business near the plant, fewer workers on site means fewer customers for your services.

You Don’t Have to Export to Feel the Burn

Even if your business has zero exports, you’re still in the line of fire. Why? Because South Africa’s biggest manufacturers create jobs, power local supply chains, and circulate cash. When they lose money, everyone in the chain suffers. That includes you, the small business owner.

With reduced operations, these large companies start cutting costs—canceling contracts, delaying payments, or laying off staff. Those unemployed workers were your customers, or maybe your employees’ family members. Now they’re buying less, or not at all. The economic stress spreads like a virus.

Consumer Confidence Dips—So Does Spending

South African consumers are not immune to bad economic news. When they hear about job losses in the auto sector or read that the US is punishing local exporters, their confidence dips. They spend less, save more, and avoid big purchases. That means fewer clients walking into your store, fewer orders placed online, and less overall business activity.

Banks and Lenders Tighten the Purse Strings

In uncertain trade environments, banks become more cautious. They may tighten access to credit for small businesses like yours. Loan approvals take longer, interest rates rise, and collateral requirements increase. That can delay your expansion plans, slow down your operations, or force you to postpone hiring.

Rising Costs and Raw Material Shocks

Even if you’re a retailer or wholesaler, trade disruptions may increase your cost of goods. Why? South African manufacturers might have to pivot away from the US and source new international markets. That can disrupt their production timelines or push them to raise prices. Eventually, you pay more for inventory, and your profit margin shrinks.

A Wake-Up Call to Diversify

For many South African businessmen, the US tariffs serve as a reminder to diversify. Overreliance on one market—either as a buyer or seller—can be risky. It may be time to explore regional trade within Africa, build digital platforms to reach local customers more efficiently, or rethink your supply chains to reduce dependence on export-driven clients.

Conclusion: This Isn’t Just About the US and the Government

When the US imposes tariffs, the news makes headlines for a few days. But for you—the South African businessman—the effects could last months or even years. Reduced orders, fewer jobs, shrinking demand, and tighter credit are not abstract threats. They are realities that affect your balance sheet, your payroll, and your ability to grow.

So yes, international trade wars can happen on the other side of the world, but their consequences are delivered right to your doorstep.