South African tech startups are feeling the sting of a new 30% tariff imposed by the United States, even though most of them don’t export directly to the U.S. The tariff, which mainly targets manufacturing and agricultural products, affects companies shipping hardware or assembled electronics.
While many South African tech firms focus on software and services, which aren’t covered by the tariff, the few that export physical products are already reporting increased costs and tighter profit margins. Industry experts say this may force some startups to adjust prices or seek new international markets.
The South African government is engaging with U.S. officials in hopes of negotiating relief or exemptions. A support desk has also been set up to help affected exporters explore alternative solutions.
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