Kganyago told local radio station 702 that the impact of the 30% tariff, which Africa’s biggest economy faces from August 1, could cause significant damage to specific industries.
“The impact in agriculture could actually be quite devastating because agriculture employs a lot of low-skilled workers, and here the impact is on citrus fruit, table grapes and wines,” Kganyago said.
He said statistics showing South African car exports to the United States slumped more than 80% in the wake of import tariffs imposed on cars by the Trump administration in April were very concerning.
“If we do not find alternative measures the impact on jobs could be around 100,000, so that is what we actually face,” the governor said
South Africa already has one of the highest unemployment rates in the world, with the official rate sitting at 32.9% in the first quarter of this year and an expanded definition at 43.1%.
In the citrus sector alone the tariffs have put 35,000 jobs in jeopardy and threaten to devastate towns such as Citrusdal in the Western Cape that are heavily dependent on exports to the U.S.
South African President Cyril Ramaphosa pushed back against U.S. President Donald Trump’s imposition of a 30% tariff from next month, saying that it is based on an inaccurate view of the two countries’ trade and that negotiations with the U.S. would continue.
Trump ramped up the trade war he started in April by telling 14 countries including South Africa on Monday that they face sharply higher “reciprocal” tariffs from August 1. South Africa has been trying to negotiate a trade deal with the U.S. since May but is yet to agree on terms.
“South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data,” Ramaphosa said in a statement late on Monday.
He said South Africa’s interpretation was that its average tariff on imported goods was 7.6% and that 77% of U.S. goods face no tariffs in his country.
Ramaphosa said it was positive that Trump had said the 30% tariff could be modified depending on the outcome of trade talks, and he urged South African companies to diversify.
But Agriculture Minister John Steenhuisen and groups representing farmers and the wine industry said it would take time to lock down new export markets.
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Steenhuisen said Trump’s team had initially wanted to see “more ambition” in South Africa’s trade proposals.
“We need to try and find out exactly where the mark is with the U.S. What is it that they actually want? And whether that’s in the realm of the possible for us,” he told a press conference.
South Africa first proposed a trade deal in May when Trump hosted Ramaphosa in the White House and presented him with false claims of a “genocide” against whites in South Africa. It held more talks at a U.S.-Africa summit in Angola last month.
The U.S. is South Africa’s second-largest bilateral trading partner after China.
As well as car parts and other manufactured goods, South Africa exports agricultural produce to the U.S. like fruit, wine and nuts.
Wine exporters are exploring options like price adjustments and redirecting stock to manage the impact of the 30% tariff, an industry group said.
Agri SA said citrus farmers may experience a significant loss of market share to competitors like Chile and Peru, and it also flagged potential impacts on producers of other fruit and items like ostrich leather.