BRICS Emerges as Alternative as U.S. Tariffs Squeeze South Africa

DR ERIC HAMM|August 29, 2025

REALIGNMENT: The author argues that US President Donald Trump’s tariff policies accelerated South Africa’s strategic shift toward BRICS. Photo: GCIS

South Africa has fought hard to preserve its trade ties with the United States. President Cyril Ramaphosa even traveled to Washington to offer a “framework deal” that included buying American liquefied natural gas and investing around $3.3 billion in the U.S. economy.

But those overtures failed. On August 8, 2025, the United States imposed a sweeping 30% tariff on most South African exports, abruptly raising barriers on goods ranging from fruit to automobiles.

The impact of this tariff hike is already rippling through South Africa’s economy. The 30% levy covers roughly 65% of South Africa’s exports to the U.S. and is expected to hit farmers, automakers and textile producers particularly hard. Officials warn tens of thousands of jobs could be lost as these industries, which long enjoyed easy access to U.S. markets, suddenly face higher costs and shrinking demand.

The prospect of widespread layoffs has galvanized a swift response from Pretoria and the private sector. With the U.S. market closing its doors, an urgent search is under way for alternative buyers. “South Africa will look for new markets,” Agriculture Minister John Steenhuisen said in a recent statement.

Producers, especially farmers, are now scouring other continents for customers to replace their American buyers. Asia is a primary focus: China, already South Africa’s largest trading partner, has an appetite for many of the commodities South Africa exports, and India’s huge consumer base offers new opportunities as well. Friendly markets in the Middle East and Europe are also being explored.

But perhaps the most logical pivot is toward the very coalition South Africa helped found: BRICS.

The BRICS bloc (Brazil, Russia, India, China, and South Africa) is increasingly seen as a crucial economic lifeline amid these trade tensions. South Africa is not only a member of BRICS but one of Africa’s most dynamic economies, giving it established ties with some of the world’s biggest emerging markets.

TARRIFS: U.S. President Donald Trump shows an executive order on tariffs at the Rose Garden of the White House in Washington, D.C., on April 2, 2025. The author warns that the United States’ sweeping 30% tariff on South African exports could cost tens of thousands of jobs nationwide. Photo: Xinhua/Hu Yousong

Many experts are now urging Pretoria to reorient exports toward its BRICS partners. The idea isn’t far-fetched – China and India already rank among South Africa’s top export destinations – and BRICS countries collectively represent a vast consumer base with growing middle classes. Moreover, the BRICS grouping itself is expanding.

This year the alliance invited new members, including Egypt, Ethiopia, Indonesia and the United Arab Emirates, broadening its reach and influence. With this “BRICS+” expansion, the bloc’s economic clout is set to increase, opening more opportunities for members to trade with each other.

Economists note that while the American market’s partial closure is a blow to certain sectors, it is far from a knockout punch for South Africa’s overall economy.

The United States was South Africa’s second-largest export destination (after China) and a major buyer of commodities like platinum, autos and citrus fruit. Even so, U.S.-bound goods made up only about 10% of South Africa’s total exports. Since exports account for roughly a quarter of South Africa’s GDP, the new tariffs directly threaten around 2.5% of the country’s economic output – significant, but not crippling.

“The effect of these sanctions should not be overestimated,” says Darya Zelenova, head of the BRICS African Strategy Center at the Institute for African Studies. She points out that South Africa’s large domestic market provides a buffer against external shocks. Zelenova believes South Africa can redirect goods to other BRICS markets, “if there is political will” from Pretoria’s leadership.

As one example, she notes that Russia could start importing avocados and other produce from South Africa instead of from distant suppliers. “If South Africa does not have favorable conditions for entering the American markets,” Zelenova observes, “then others will be found.”

IMPETUS: The US delegation meeting with the South African delegation at the White House in Washington DC, on 21 May 2025. Photo: South African Presidency. The Author says South Africa losing privileged access to the U.S. market serves as an impetus to pivot more decisively toward new partners. Photo: GCIS

Reorienting trade will not happen overnight, but the government has begun laying the groundwork.

Officials have announced plans to support industries hit by the U.S. tariffs and are ramping up efforts to help local exporters find new buyers abroad. Trade delegations are being readied for Asia and the Middle East to promote South African goods, and opportunities under Africa’s new free trade pact are being pursued to boost regional commerce.

Still, much of the focus is on strengthening ties with BRICS and other partners across the Global South as the surest way to cushion the blow from lost American business.

South Africa’s pivot toward BRICS also comes amid a broader geopolitical realignment. The world is moving into a multipolar era in which rising powers in the developing world demand a greater say in global affairs.

The BRICS coalition has become a leading platform for this shift, giving emerging economies a stronger voice. Yet Washington has bristled at the trend. U.S. President Donald Trump’s attempts to pressure BRICS members into toeing the American line, including efforts to coerce India and Brazil to abandon the group, have seemingly backfired. Instead of weakening BRICS, such moves have reinforced its cohesion as a bloc determined to reform global trade and financial rules.

In effect, Trump’s tariff offensives have accelerated the very realignment that Washington hoped to prevent.

For South Africa, losing privileged access to the U.S. market is a tough near-term setback that will test some industries. However, it also serves as an impetus to pivot more decisively toward new partners. By doubling down on ties with fellow BRICS nations and other emerging economies, South Africa can reduce its reliance on any single market and build a more resilient export base.

Challenges remain, as cultivating new markets takes time and competition can be fierce. But South Africa boasts world-class agricultural goods, a solid manufacturing base and abundant mineral resources to leverage. Ultimately, Pretoria’s renewed emphasis on South-South cooperation signals that the country’s economic future may no longer be tethered to Washington.

In the wake of the U.S. tariffs, BRICS and other friendly markets are emerging not just as a stopgap but as a strategic alternative for South Africa’s future growth.