South Africa’s central bank has called for faster structural reforms to shield the economy from the impact of US President Donald Trump’s punitive tariffs, particularly on the automotive and agriculture sectors, Bloomberg reported.

The South African Reserve Bank (SARB) said in its semi-annual Monetary Policy Review that accelerating reforms could enhance productivity and mitigate the loss of export competitiveness. It recommended diversifying export markets and strengthening trade partnerships, including the full implementation of the African Continental Free Trade Area (AfCFTA) agreement.

Since August 7, the United States has imposed tariffs on several trading partners, with South Africa’s levy set at 30 percent, the highest in sub-Saharan Africa. The central bank warned that the measures threaten key sectors that rely heavily on access to US markets under existing trade agreements.

Although SARB expects the tariffs to have a limited effect across the overall economy, certain sectors are likely to face significant disruption. Its economic models suggest that as many as 40,000 jobs could be at risk, particularly in specialized segments of the automotive supply chain.

The US is South Africa’s third-largest market for vehicles and automotive parts, with exports valued at 35 billion rand (2 billion US dollars) in 2024. “The 25 percent tariff levied on South Africa’s auto and parts exports exceeds that applied to most competitors and will sharply reduce South Africa’s competitiveness in the US market, threatening output and jobs in a sector that anchors the broader manufacturing base,” SARB said.

The central bank stressed that timely structural reforms and market diversification are essential to safeguard employment, sustain industrial output, and maintain South Africa’s role in global supply chains.