The U.S. has officially reduced the tariff applied to South African goods, cutting the headline rate from 30% to 10%. For South African businesses shipping to the U.S., this is a significant shift.
Here’s a straightfoward breakdown of what changed, what hasn’t, and what this means for your margins, pricing, and global growth plans.
For SA exporters, this is real progress.
Over the past year, U.S. trade policy changes significantly increased the cost of shipping to America, particularly for small-parcel e-commerce exports.
On 20 February, the U.S. Supreme Court ruled that the 30% IEEPA tariff program was unconstitutional. As a result, the 30% reciprocal tariff applied to South African goods was terminated. Shortly thereafter, a new Executive Order introduced a 10% global flat tariff. Donald Trump has threatened to increase the global tariff to 15%, however this has not yet been made official.
📢 Effective 24 February, South African exports to the U.S. are subject to a 10% tariff instead of 30%.
That’s a material reduction in the tariff layer impacting your shipments.
While the tariff rate has dropped, one major rule remains in place:
⚠️ The $800 de minimis threshold is still suspended.
Previously, parcels under $800 could enter the U.S. duty-free. That exemption no longer applies. Every parcel entering the U.S. is still subject to duties and tariffs, regardless of value.
This means:
The environment is easier, but it’s not pre-2025 normal.
A reduction from 30% to 15% is not a small adjustment. It materially changes the economics of exporting to the U.S.
The effective tariff layer has more than halved. That directly reduces the additional cost attached to each shipment.
The new 10% rate applies globally, not just to South Africa. This places South African brands back on a level playing field with competitors shipping into the U.S.
For South African brands, this can positively impact price positioning and conversion rates
If you’ve been absorbing part of the tariff to remain competitive, this shift gives you breathing room.
If you passed duties directly to customers, you may now be able to improve conversion without sacrificing margin. Either way, the maths just changed.
If you were previously shipping a R1 000 product into the U.S.:
That’s R200 less in tariff on every R1 000 shipment (before factoring in other duties or fees). Multiply that across hundreds or thousands of orders, and the impact becomes meaningful.
When trade rules shift, opportunity opens. Here’s what to review:
Global growth doesn’t require a rebuild. If you paused expansion plans or tightened margins under the 30% rate, this is your moment to recalibrate.
If you’re currently shipping to the U.S. (or planning to) now is the time to rework your numbers with the new 10% rate in mind.
Read our full 👉 Navigating the U.S. Tariffs Playbook for practical guidance on pricing, duties, and protecting your margins in a changing trade environment.
Your products deserve to cross borders. This change makes things easier.
This update eases pressure, but international trade rules can shift fast. We’re monitoring U.S. tariff developments closely and will keep you informed so you can move with confidence. Should an Executive Order raising the rate from 10% to 15% be signed, we will update immediately.
