D-day for SA fruit exporters as 30% US tariff hits

With no new trade deal struck between South Africa and the United States, local agricultural exporters are now facing a punitive 30% tariff on exports to the US, effective 1 August. It has sent shockwaves through the South African fruit industry, which relies heavily on US market access, particularly for citrus.

Nico van Staden, managing director and founding member of Core Fruit, said their company has already made a tough call in response. “As a company, we’ve decided to stop shipping. We’ve loaded our last vessel. I think some exporters will carry on.

“I believe it will be better for oranges in the US market still, but Peru and Chile are very big on mandarin imports, and we also are a big mandarin exporter. So I think with the extra tariff and the cheaper rates, our prices will make sense there.”

Core Fruit is one of South Africa’s most prominent fruit export companies. Van Staden warns the impact of the tariff hike could be devastating, especially for growers in the Western Cape, one of the few provinces with clearance to ship citrus to the US.

“The South African citrus market in the USA is a big concern. Currently, I think there’s about 6 million 15-kilogram cartons going to the US, so it’s not a market that you want to lose.”

Van Staden noted that South Africa’s total agricultural exports are now valued at US$13.7 billion, a significant increase from US$2 billion in 2000.

“You can see very good growth since 2000. The USA market is about 4% of that 13.7 billion, so it is mainly citrus, table grapes, and then also smaller volumes of plants and wine as well.”

US President Donald Trump has also since threatened to impose an additional 10% tariff on the Brics group of countries and any country that aligns itself with what he calls “anti-American” policies. South Africa is a member of Brics.

‘Losing the US is not an option’

While some in the sector believe South Africa should pivot to alternative markets, Van Staden strongly disagrees.

“I hear a lot of people say that we can find other markets, we don’t need the US. I totally disagree with that. I think we need the US as a market. It’s a massive market with 300 million people, and they’ve got strong buying power.”

He stressed the importance of market diversification. “The biggest advantage for us as exporters is to have options. Your market prices are still determined by supply and demand, so if you have less options, it will have a negative effect on prices.”

The newly introduced tariff, Van Staden warns, could push up costs by US$4 to US$4.50 per carton.

“It is a lot of money, and that will just be the bottom line,” he said. “I think it will influence the Western Cape very badly. As you know, it’s only the Western Cape and the Northern Cape that can export to the US because of black spot. So the Eastern Cape and Limpopo don’t have access, so that Western Cape fruit will just go now to other markets.”

He noted the potential loss in value. “Just as a guide of value – in 2023, that was R18 billion. So you can just do your numbers now -30% duty, that will be gone.”

WC govt doubles down on exports

In the face of growing trade uncertainty, the Western Cape government has reaffirmed its commitment to accelerating export-led economic growth.

Speaking at the West Coast Export Seminar in Lutzville, Matzikama, provincial minister of agriculture, economic development and tourism, Dr Ivan Meyer, said the West Coast region contributes R9.5 billion to the Western Cape’s total exports, with agricultural exports reaching R3.47 billion in 2024 – 37% of the district’s total export value.

“Leading export destinations include the Netherlands, the United States, the United Kingdom, France, and Italy. France and Italy have shown remarkable growth of 318% and 86%, respectively, over the past five years.”
Dr Ivan Meyer

To support continued export growth, Meyer outlined a suite of interventions.

“These include the export competitive enhancement programme (ECEP) and export accelerator programme, both designed to boost exporter readiness; an online export training programme aimed at building capacity; enhanced market intelligence to identify new opportunities; and ongoing support to create an enabling environment for sustained export growth.”

According to Meyer, these initiatives align with the province’s broader vision: “By 2035, we aim to triple the value of Western Cape exports, positioning our province as a leading global export region.”

National govt responds to tariff fallout

Meanwhile, agriculture minister John Steenhuisen has voiced serious concern about the implications of the new US tariffs, calling it a “deeply troubling development”.

“While the Agoa preferences technically remain on the books, these tariffs, in practical terms, render the agreement inert,” he said.

“South African agriculture did not deserve this treatment. We do not dump, we do not distort, and we do not play geopolitical games with food.”
Minister John Steenhuisen

He confirmed that ongoing negotiations were underway between the department of trade, industry and competition, and industry partners like the Southern Hemisphere Association of Fresh Fruit Exporters.

Despite the challenges, Steenhuisen pointed to positive progress on other fronts. “Over the past six months alone, we have finalised new phytosanitary protocols for the export of avocados to China; table grapes to Vietnam and the Philippines; and maize to India.”

He added that further negotiations are in progress with Indonesia, Thailand, and Bangladesh, while domestic investments are being made in plant health systems, digital export certification, and traceability to meet international standards.

Meanwhile, Wandile Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), added that the situation must be seen within the broader context of uncertainty in global trade dynamics.

“This is not the end of the road. The South African government continues to negotiate. Senior officials from the department of trade, industry and competition (DTIC), department of agriculture, department of international relations and cooperation (Dirco), and the presidency are likely to go to the US soon to further persuade the US administration for much more favourable tariff levels.”

Still, he cautioned that the path ahead will not be easy, adding that these negotiations, as seen in so many countries, are proving to be challenging.