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18 February 2026 – The recent US decision to impose reciprocal tariffs has significant implications for SACU, a regional bloc consisting of Botswana, Eswatini, Lesotho, Namibia, and South Africa. These trade measures, initiated by President Donald Trump in April 2025, form part of a wider effort to rectify what the US government perceives as unfair trade practices, specifically targeting nations with large trade surpluses relative to the US.
The US’s decision to increase tariffs unilaterally, without engaging the affected SACU member states, marks a significant deviation from established international trade practices, undermining both global trade dynamics and the core principles of the multilateral trading system.
For SACU, these tariffs measures threaten to undo progress achieved in trade relations with the US, as exports from SACU to the US have been on an upward trajectory since 2017. Moreover, the imposition of tariffs poses the risk of shifting SACU’s export profile away from more value-added manufactured goods toward a more extractive, resource-based trade relationship. This will keep SACU member states exporting minerals and hinder development of their refining capacity (SACU, n.d.).
SACU AND THE US
Although SACU and the US were unable to finalise a Free Trade Agreement (FTA), they signed a Trade, Investment, and Development Cooperation Agreement (TIDCA) on July 16, 2008. The TIDCA provides a structured platform for dialogue, collaboration, and potential arrangements across a broad spectrum of trade-related matters. Key areas of focus include customs and trade facilitation, addressing technical barriers to trade, sanitary and phytosanitary standards, and the promotion of trade and investment.
SACU member states reciprocal tariffs In April 2025, the US introduced reciprocal tariffs on imports from SACU member states. The US applied country-specific tariff rates on SACU imports: 50% on goods from Lesotho, 37% from Botswana, 30% from South Africa, 21% from Namibia, and 10% from Eswatini. This marks a significant shift from previous trade arrangements, particularly under AGOA which had granted the SACU member states preferential access to US markets.
These higher tariffs are likely to have substantial economic implications, especially for Lesotho, whose clothing, textiles, leather and footwear (CTFL) industry depends heavily on access to the US market. Around 99% of Lesotho’s exports to the US are products from the CTFL industry. However, the total share of Lesotho’s exports to the US has declined over the years, from 45% in 2017 to 19% in 2023. The imposition of these tariffs may reduce export competitiveness, increase production costs, and strain the trade relationships between SACU and the US. There are ongoing efforts to engage the US aimed at finding a different tariff approach from the one announced in April. Source: Trade & Industry Policy Strategies (TIPS) Download report: file:///C:/Users/USER/Downloads/TIPS_Policy_Brief_Implications_of_the_US_reciprocal_tariffs_for_the_Southern_African_Customs_Union.pdf