The Aluminium Federation of South Africa (AFSA) has voiced concerns over Trump’s new 25% tariff on steel and aluminum, fearing it could worsen existing trade barriers. The association is uncertain whether this tariff will replace or add to the 10% duty imposed under Section 232 during Trump’s first term.

If applied globally, the impact on South African exports may be less severe, as all countries would face higher prices. However, Trump’s mention of "reciprocal tariffs" raises questions about South Africa’s possible response, which would require thorough processes.

Analysts warn that Trump’s hardline trade stance could spark a global trade war, with Asian markets already showing declines and commodity-linked currencies, including the Canadian dollar and Mexican peso, weakening. Major exporters like Canada, Brazil, Mexico, and South Korea are also expected to be hit hard.