US tariffs highlight urgent need to support small businesses
As concerns mount over the announcement of a 30% tariff on most South African goods entering the US, business development service Entrepreneurship to the Point (eTTP) has called for urgent support to small, medium-sized and microsized enterprises (SMMEs).
As diplomatic channels work to de-escalate the situation before the August 1 deadline, eTTP warned that the tariffs, which were confirmed on July 7 by US President Donald Trump in a formal letter to President Cyril Ramaphosa, could significantly destabilise the progress made in building resilient, export-ready small businesses.
“This decision poses a real and immediate threat to the South African SMME sector, particularly to emerging black-owned businesses that have only recently begun to tap into global value chains.
“Tariffs of this scale will undercut years of development work and could collapse fledgling export relationships that SMMEs are only beginning to establish,” Property Point and eTTP founder Shawn Theunissen said on July 14.
eTTP aims to create economic inclusion through entrepreneurship and focuses on the creation of a robust and dynamic SMME ecosystem through business networking, access to information and business resources, as well as establishing learning opportunities.
“We’re concerned about how these tariffs will affect SMMEs across South Africa. The ripple effect that this will have must not be underestimated, not just on job creation, but on investor confidence, business survival, and long-term transformation in the South African economy,” Theunissen added.
eTTP called on government to take swift and targeted action to protect small businesses from the worst effects of the tariffs.
Immediate steps could include establishing a small business trade relief fund to cushion losses from disrupted US trade, and fast-tracking access to alternative international markets for SMMEs through bilateral partnerships. eTTP also called for government to offer support to SMMEs with compliance and recertification needs for new trading zones, and to advocate for sector-specific tariff exemptions where possible.
“While we support . . . Ramaphosa’s diplomatic efforts, time is short, and the stakes are high. We need a coordinated national response that centres on the needs of small businesses. South Africa’s economic resilience depends on it,” Theunissen said.
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