South Africa must be wary of United States President Donald Trump’s plans to impose tariffs on BRICS Plus bloc member states. South Africa, two weeks on since the imposition of tariffs, has to brace itself for the fact that the Trump administration’s move to impose a further 25% tariff on India this week is just the latest salvo against the bloc. This was according to economists at the Bureau for Economic Research (BER). In his latest executive order, President Trump imposed an additional 25% punitive tariff on India’s economy, citing the Asian tiger’s continued purchases of Russian crude oil. This comes on top of the 25% previously levied.
It followed Washington’s move to hike Brazil’s tariff up to 50% and comes after months of tensions and an all-out tariff war between the US and China, and continued pressure on Russia. The new tariffs are set to take effect 21 days from Wednesday (6 August), allowing time for another round of negotiations.
“With this move, India joins Brazil as the country facing the highest combined US trade tariffs, now at 50% each. Other BRICS members are also heavily impacted,” the BER noted. “While the US-China tariff truce, set to expire on 12 August, remains in place as talks continue, the US President has warned that Beijing could face further tariffs if it continues to buy Russian oil.”
Compared to its BRICS peers, South Africa has come off relatively lightly with the 30% tariff that has been imposed. However, given its affiliations, worse could still be coming.
South Africa might find itself stuck between a rock and a hard place should Trump and his inner circle turn up the heat. However, this could only be short-term depending on how Pretoria and other BRICS Plus members play their cards. Trump is seeking to undermine and encircle emerging economies depending on who they trade with. In this case, they could be Moscow, Beijing or even Tehran (also a BRICS Plus) economy. Trump does not want Russian oil to be bought by any major economy or nation. One possible reason is the continued imposition of sanctions on the Russian economy due to the continued war in Ukraine. A safe market for South Africa and other BRICS Plus Markets, like China, would be to invest in oil-rich African countries like Nigeria.
Pretoria must look to its fellow regional allies in Africa and those that are members of BRICS, such as Ethiopia, Nigeria, and Egypt, building stronger relations with them. These relations should stem from cooperation on trade and infrastructure development. Agreeing to trade in their currencies should also be an integral part of these relations.
BRICS provides African nations with significant leverage, offering them a crucial role in reshaping global financial regulations. To truly achieve liberation, however, African states must seize this opportunity to establish autonomous institutions. The African Continental Free Trade Area (AfCFTA), when integrated with BRICS mechanisms, can foster increased intra-African trade using local currencies. Furthermore, the Pan-African Payment and Settlement System (PAPSS) by the African Export-Import Bank, introduced in 2022, can work in conjunction with BRICS infrastructure to lessen the continent’s reliance on the US dollar. Uganda and Nigeria are engaging with BRICS-related initiatives, signalling a shift away from dollar-denominated transactions. Uganda, while not a full BRICS member, signed a 2025 memorandum with India to investigate using the rupee for agro-processing imports, which would alleviate pressure on its dollar reserves.
Nigeria is exploring membership in the BRICS Bank (NDB), aiming to access non-dollar loans that could finance energy infrastructure and mitigate foreign exchange risks.
If Africa is to grow strong, South Africa must grow strong with it. If South Africa is to go strong, Africa must do so as well. One cannot, in terms of finance, economics and industry, take root without the other. Yes, South Africa is the gateway, Africa’s internal regions are the seat of opportunities, but there needs to be an integral role for roads and railways linking South Africa to the rest of the continent. AfCFTA, from its inception, is the cornerstone of economic integration and free trade for Africa. If African states can break their reliance on the US Dollar and forge a new monetary alliance alongside the BRICS bloc, they may be able to defy Trump’s tariffs. It all comes down to having the right tools, such as infrastructure and financial institutions.
African heavyweights in BRICS, such as Nigeria and South Africa, can serve as the bridge between AfCFTA and the bloc of emerging economies. It remains to be seen how Africa and South Africa engage with BRICS to build an economic alliance in the Trump climate.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
