RMA HQ, PARKTOWN, 20 AUGUST 2025 – The newly introduced 30% tariff on South African goods exported to the United States of America is a major cause for concern for our country’s economy and threatens to further exacerbate our already significant unemployment crisis.
In recent months, US tariff hikes have disrupted global trade dynamics, sending local exporters scrambling for alternative trade channels. Several key industry sectors in South Africa, including steel, aluminium and automotive, have been directly impacted by the US tariffs, forcing local organisations to adapt their operations.
The global ripple effects of these measures have also been significant. Reduced global demand, supply chain disruptions and strained trade relationships with key partners can have a knock-on effect on South Africa’s export-heavy sectors, including mining, metalwork and automotive.
This has further threatened to endanger livelihoods, weaken community resilience and expose workers to heightened physical and psychosocial risks. Alarmingly, multinational accounting giant EY warns that South Africa could shed about 100 000 jobs due to the tariffs, which would be catastrophic for a country already grappling with a national unemployment rate of over 33%.
When global demand softens under protectionist policies, South African producers feel the squeeze immediately. Mining companies face deferred orders from smelters abroad, metal fabricators contend with higher input costs, and manufacturers see tentative buyers delaying new contracts. The automotive sector has not been spared either, with job cuts rippling through original equipment manufacturers such as the popular German carmaker plant, where production of left-hand drive vehicles destined for the US market is increasingly vulnerable to shifting trade rules and weakened foreign appetite. These pressures translate into slower production schedules and escalating operational expenses.
Layoffs and reduced shift rosters represent the most visible face of economic contraction. Yet the human fallout extends well beyond the unemployment register. Every job lost can trigger a cascade of financial stress: mortgage or rent payments go unpaid, children’s education is jeopardised, and household budgets shrink dramatically.
Impacted workers and their families confront an immediate decline in quality of life, resorting to secondary or informal employment, often taking on roles that are less secure and typically provide minimal social protections. In this context, the loss of formal unionised jobs deepens existing social vulnerabilities and heightens community instability.
Amid major job losses and heightened job insecurity, another trend is quietly intensifying, namely, workforce absenteeism. Even employees who retain their positions experience mounting pressure to perform in a more precarious environment.
Anxiety about future layoffs, stagnant wages and longer work hours without commensurate support fuel psychosocial stress. This stress manifests in fatigue, sleep disturbances and a surge in stress-related illnesses, from hypertension and migraines to depression and burnout. Consequently, absentee rates climb, further undermining productivity and creating a vicious cycle of overwork for those still on the payroll.
Economic uncertainty is recognised as a potent mental health trigger. When workers fear for their jobs, they become hyper-vigilant about every downturn indicator, such as quarterly earnings, production cutbacks, or rumours of plant closures. This constant state of alert depletes emotional reserves, leading to heightened irritability, difficulty concentrating and diminished engagement.
Even physically capable employees may find themselves unable to function optimally, taking unplanned sick days or requesting early leave to cope. The cost of these absences is not simply the lost hours on the factory floor; it is the erosion of human potential and the weakening of the social fabric that underpins economic resilience.
Unfortunately, policy debates often revolve around trade deficits and GDP forecasts, sidelining the lived experiences of workers. Yet, the most enduring impact of global tariffs will be measured not by percentages in economic reports but by the well-being of South African families.
Addressing economic challenges requires a strong focus on prevention. RMA’s prevention programme collaborates with employers to identify and mitigate workplace hazards, including physical and psychosocial risks. We conduct risk assessments, offer stress management training, and assist companies with ergonomic solutions.
By reducing the incidence of injury and illness claims, RMA helps companies avoid the additional costs of absenteeism and compensation claims. More importantly, we reinforce a culture of safety and well-being that bolsters morale, fosters loyalty and equips organisations to weather external shocks more effectively.
During an economic downturn, safety budgets are often the first to be cut. The ripple effect of these decisions creates a vicious cycle: less production as accidents increase, leading to higher medical and compensation costs, damage to reputation, and, sadly, preventable loss of life. As companies face difficult trade-offs, one truth must remain unwavering: safety is not a luxury to be sacrificed during tough times, but a vital support that keeps a company afloat.
Protecting workers must be integral to South Africa’s economic strategy. Investments in prevention and rehabilitation deliver dividends beyond the factory gates and can ultimately transform the narrative from one of vulnerability to one of resilience.
In uncertain times, our greatest asset remains the strength, skill and spirit of our workforce. Let us protect it with the seriousness and commitment it deserves.