Ex-WTO exec warns Pretoria to urgently address ‘non-tariff barriers’ or exporters will pay 40% price

In the most recent annual assessment of trade relationships, the US listed three pages of ‘non-tariff barriers’ imposed by South Africa, whose exports currently enter America duty-free. From August 1, Trump Tariffs will make SA goods 40% more expensive for Americans. Trade expert, former WTO senior official Johann Human rates the chances of SA avoiding Trump Tariffs at ‘zero’ and in this powerful interview, says unless Pretoria starts to take US objections, SA goods will soon be priced out of the world’s biggest marketplace, with a devastating impact on employment. He spoke to BizNews editor Alec Hogg..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..Watch here.Listen here.BizNews Reporter .With less than two weeks until the 1st of August deadline, South African exporters are facing an increasingly uncertain trade landscape. Former World Trade Organisation (WTO) official and trade expert Johann Human has confirmed that there is “absolutely zero” chance of avoiding newly imposed tariffs by former US President Donald Trump, who is widely expected to return to office following strong political momentum and favourable economic data. For South Africa, the stakes are high - and the response from Pretoria, so far, appears worryingly slow.Trump initially announced a sweeping tariff regime on what he called “Liberation Day,” aimed at imposing reciprocal duties on countries he believes are benefiting unfairly from trade with the United States. Since then, the plan has evolved and expanded. South Africa was one of 20 countries named in a recent list of nations facing significant tariff hikes. According to Human, South African exports to the US will be hit with a 30% tariff increase across the board starting 1 August. Additionally, sector-specific tariffs on steel and aluminium have already doubled - from 25% to 50% - and now include a broader range of products such as white goods.The situation could get worse. As a BRICS member, South Africa may also be subject to an additional 10% tariff “bonus,” aimed at countries seen as aligning with Russia. Though not yet confirmed, Human warns it remains a serious possibility.In stark contrast to the rapid movements out of Washington, Pretoria has yet to signal any meaningful readiness to engage. “The South African government cannot decide these things by whim,” Human said, referencing the lengthy consultation processes required in democratic nations. But with the clock ticking, that approach may be insufficient. Other countries, notably Canada, are already taking proactive steps. Ottawa has introduced a tariff rate quota system for steel imports and may soon extend similar protections to other sectors.Meanwhile, Trump’s trade strategy is proving lucrative domestically. As Alec Hogg of BizNews noted during the interview, the US Treasury raked in an additional $50 billion in the second quarter alone due to the tariffs. With political capital building, the transactional Trump appears committed to following through on his promises this time.Beyond tariffs, non-tariff barriers (NTBs) have emerged as a key battleground. These include regulatory policies, sanitary and phytosanitary measures, product standards, and even domestic social policies like Broad-Based Black Economic Empowerment (B-BBEE). “The Americans are calling BEE a non-tariff barrier,” said Human. Pretoria, he argues, has not paid sufficient attention to these increasingly important trade determinants.In fact, the US annually publishes a National Trade Estimate Report on Foreign Trade Barriers. The 2024 edition includes three pages on South Africa, focused almost entirely on NTBs. These “beyond-border” measures have grown in relevance globally, particularly in sensitive sectors like food and manufacturing, where high standards and compliance requirements are common.According to Human, South Africa’s apparent lack of urgency is not helping its case in Washington. The country currently has no active ambassador in the US, and its recent diplomatic track record signals disinterest in the bilateral relationship. This is troubling, especially as many countries are now queuing to negotiate favourable exemptions or bilateral deals with the US ahead of the 1 August implementation.Looking forward, Human believes South Africa must act decisively. This includes not only engaging the US on both tariffs and NTBs but also bolstering domestic trade defence mechanisms such as anti-dumping laws and emergency quotas. “Do we have the legislation to be able to move quickly?” he asks. With massive steel overcapacity in China - estimated between 50 million and 100 million tonnes - global trade diversion is inevitable. Countries like Canada are already guarding against it; South Africa must be prepared to do the same.In sum, 1 August is not just a date on the calendar - it’s a test of South Africa’s trade policy agility and global economic relevance. Failing to act could see the country left behind in a world where speed and strategic negotiation are everything.

Ex-WTO exec warns Pretoria to urgently address ‘non-tariff barriers’ or exporters will pay 40% price

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