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SA signals intent to prohibit goods produced by forced labour after new 12.5% US tariff

Trade, Industry and Competition Minister Parks Tau

Trade, Industry and Competition Minister Parks Tau

27th July 2026

By: Terence Creamer

Creamer Media Editor

     

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Trade, Industry and Competition Minister Parks Tau reports that government will publish a Gazette notice requesting public comments on South Africa’s intent to issue regulations to prohibit goods produced using forced labour and child labour.

The move follows a decision by the United States Trade Representative (USTR) to impose tariffs of 12.5% on those South African exports not specifically exempted from such duties, or which are already subjected to other tariffs.

South Africa was one of 60 countries on which tariffs of between 10% and 12.5% were imposed following a USTR investigation under Section 301(b) of the Trade Act of 1974, which examines whether a country’s policies or practices are discriminatory and burden or restrict US commerce.

In this case, the focus was on practices related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.

The investigation was initiated on March 12 after the US Supreme Court's decision to invalidate President Donald Trump's so-called ‘Liberation Day’ tariffs, which were imposed in 2025 under the International Emergency Economic Powers Act.

South Africa is among 41 economies that are now subjected to a tariff of 12.5%, with another 19 economies to face 10% tariffs, as they were found to have imposed laws that prohibit importation of goods produced using forced labour.

The decision came despite numerous written submissions by the South African government, as well as organised labour and business, as well as testimony by the South African government at a public hearing held in Washington DC in early July.

Tau said in a statement that government would continue to engage with the USTR on the Section 301 tariffs with a view to either eliminate or reduce the current tariff imposed on the country.

“South Africa has indicated that it will be publishing a notice in the Gazette requesting public comments on [its] intent to issue regulation to prohibit goods produced using in whole or in part forced labour and child labour,” the statement reads.

Also highlighted was the fact that South African exports already subjected to Section 232 tariffs – such as automobiles and auto components, as well as steel and aluminium – were exempted from the Section 301 tariffs.

In addition, the statement points to a list of products that have been exempted from the Section 301 tariffs, including, among others, macadamia nuts, oranges, limes, tea, spices, seeds, cane sugar, orange and lime juice, syrups, chemicals, critical minerals, platinum-group and precious metals, isotopes, civil aircraft and parts and components, and pharmaceuticals.

Edited by Creamer Media Reporter

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