US President Donald Trump's announcement on tariffs could mark a pivotal moment for South Africa's green economy.

Although President Trump’s tariff decision is disruptive, it can also signal the end of complacency and the beginning of a new chapter for South Africa’s green economy.

Tariff announcement

Last week, the world woke up to the news that Trump had imposed tariffs on goods from other countries.

On Wednesday, Trump seemingly backtracked on his decision and announced a 90-day pause. This means a reprieve for other countries, except China, which Trump announced a 125% tariff increase.

Weighing in on the matter, CEO at Fibon Energy, Avesh Padayachee, said while Trump's 30% reciprocal tariff on SA imports sent shockwaves through the global market, it rattled investor confidence and supply chains.

Short-term disruption

"Renewable energy is particularly exposed. But while short-term disruption is real, this moment may also be a turning point: one that compels South Africa to localise, innovate, and adapt for long-term resilience and strength," he said.

He added that companies now have every reason to cut reliance on imports, build local capacity, and take real steps toward energy sovereignty.

Padayachee explained that SA's clean energy growth has always relied on imported hardware.

He said last year, more than R17 billion worth of solar components were imported to SA shores.

"Tariffs, a weakening rand, and trade instability could push project costs up by 25% in the short- to medium-term. Investment in infrastructure may be delayed. Risk will certainly increase. Momentum may well falter at a time that the energy transition can least afford it to," he said.

Compounding matters

Padayachee said the US's withdrawal from the $9 billion Just Energy Transition Partnership, made project financing even more precarious.

He said the impact is not limited to renewables. Sectors like agriculture and automotive manufacturing face higher costs and reduced competitiveness.

"With energy and water already consuming nearly a third of commercial farm budgets, increased cost of imported equipment could hit profitability and jobs hard," Padayachee added.

Opportunity

Padayachee said rather than being a death knell, this could be the jolt that SA needs.

"Our dependence on imported tech has always been a liability. President Trump’s tariffs expose this and create urgency, too. Government programmes like the SA Renewable Energy Masterplan target 15 000 new green jobs by 2030. We need to up the pace.

"As US doors close, others remain open. Europe, Asia, and especially the rest of Africa offer growing demand for clean energy expertise: from solar installations to green hydrogen. Africa alone could become a R200bn market in cleantech by 2035. South African companies must seize this opportunity to diversify and expand," he said.

Constraint

According to Padayachee, this could also drive creativity.

"With supply chains disrupted and margins squeezed, we may confidently expect a surge in smarter, more efficient home-grown solutions: from modular solar systems to water-saving technology. These, and innovations like them, won’t be mere stopgaps. They’re set to be the seeds of long-term sustainability," he said.

However, this isn’t just about tariffs. Padayachee said it is about how the solar sector responds.

"The sustainable energy industry will thrive through doubling down on localisation, innovation, and resilience: not in theory, but in practice, too," he said.

With the right mindset, South Africa’s future doesn’t just look greener, it also looks smarter, stronger, and far more resilient.

seanne.rall@iol.co.za

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