In her latest BLSA newsletter, Busisiwe Mavuso warns that the US decision to slap new tariffs on South African exports could cost the country thousands of jobs.
She’s calling on government to act fast, before the damage becomes permanent.
US tariffs: Who gets hit first?
US tariffs are set to hit 30% in August. The sectors facing the worst of it?
- Automotive (especially in the Eastern Cape)
- Citrus exports
- Steel and aluminium
- General manufacturing
- Wine and beef
Aluminium’s looking at 50%. Vehicles and parts? A steep 25%.
That’s a nightmare scenario for exporters.
And for small parts suppliers and farms already walking a tightrope, this could be the final push over the edge.
It’s not just about exports
SA’s exports to the US make up 2.2% of GDP. That might not sound huge, but the real pain is concentrated in specific sectors.
And some of these are deeply embedded in local economies, like the citrus industry, which supports 140,000 jobs.
Sure, some businesses may find new markets. But not overnight.
Shifting supply chains takes years. Meanwhile, these companies have to survive long enough to pivot.
Mavuso’s fix: Act like it’s COVID
Mavuso draws a sharp parallel to the COVID-19 lockdowns. Back then, government stepped up with TERS and business loan schemes to keep the wheels turning.
She says the same logic applies now.
These tariff shocks may be temporary, but job losses won’t be. If viable companies collapse, that damage becomes permanent.
Her proposal?
- Set up a “tariff impact fund” now.
- Help companies survive the transition.
- Work with industries to build new export markets.
Waiting around to negotiate with the US might help, she says.
But it won’t solve the short-term crisis. We cannot be left scrambling for a solution only after all other options have failed.
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On Mchunu: ‘Not good enough’
Mavuso also weighed in on the Senzo Mchunu situation. And she’s not impressed.
President Ramaphosa’s move to put Mchunu on leave was a step in the right direction.
But according to Mavuso, suspension would’ve been better, especially with allegations this serious: lying to parliament and interfering with police investigations into political assassinations.
She points out the inconsistency: a deputy minister was recently fired for an overseas trip mishap, but this? Just a leave of absence.
Can the Commission work?
Mavuso cautiously welcomes the inquiry into Mchunu.
She credits the president for appointing Firoz Cachalia to act as minister and Judge Mbuyisile Madlanga to head the commission.
But she’s clear: it has to move fast. No budget overruns, no delays, no dusty final reports like we saw with the Zondo Commission.
She wants real action, soon, especially in suspending anyone who could put national security at risk.
