Grape and citrus growers await Trump’s next move on tariffs

While the country and the rest of the globe await United States President Donald Trump’s next move following the pause on tariffs for 90 days, agricultural industries are also planning their next move amid uncertainty and concerns for the economy.

Chief executive officer of the South African Table Grape Industry (SATI), Mecia Petersen, said the commodity group is deeply concerned about the impact a new tariff on South African exports to the United States of America would have on the sector.

“South Africa prides itself on having an export-oriented agricultural sector, and the USA is one of the vital markets for certain commodities, including table grapes. Over the last five seasons, the South African industry has observed a 28% growth in fresh grape exports to the USA,

“South Africa holds a reputation as a reliable supplier of world-class quality grapes, and we believe that the growth demonstrated in the USA market over the last five seasons bears testament to this. Industry engagements conducted in 2024 indicated that USA-based role players had an appetite for increasing volumes of high-quality grapes sourced from South Africa,” Petersen said.

She said the South African producers provided the American consumers with necessary fresh produce at a time when they are out of season,

According to Petersen, should the implementation of a 31% tariff on South African goods proceed after the three-month pause, it would be among the highest rates to be levied. It would profoundly impact the South African table grape industry and disrupt its export flow. This also presents risks for jobs in various farming communities in South Africa.

“Peru and Chile, among South Africa’s main competitors for table grape exports to the USA, face a 10% tariff after the three-month reprieve. Should a 31% tariff be imposed on South Africa, it would create an uncompetitive market for South African producers and exporters.

“Retaining market share in existing markets remains a key priority for SATI and the farming communities in South Africa. SATI will work with the South African government and its industry representative, the Agricultural Business Chamber of South Africa (Agbiz), to pursue the continuous flow of agricultural exports to the USA under favourable trading terms,” she said.

Meanwhile, the chairperson of the Citrus Growers’ Association and a citrus producer in the Olifants River Valley, Gerrit der Merwe, said the impact of the tariffs, should they continue, is massive on rural communities.

Rural community impact

“While South Africa only exports about 5% to 6% of our citrus to the US, many rural communities in the Western and Northern Cape are heavily dependent on US exports.

“A prime example of this is Citrusdal, where exports to the US form the economic heart of this vibrant town. The severity and immediate nature of the impending tariffs could mean that towns like it now face either increased unemployment or maybe even total economic collapse. There is immense anxiety in our communities,” he said.

Van der Merwe said the CGA is calling on the South African government to prioritise immediate negotiations with the US on tariff reductions or exemptions on citrus. “This is urgently needed to avoid job and revenue losses in the citrus industry, South Africa’s largest agricultural export industry.

“Citrus should be on the White House’s exemption list. It is seasonal, and it supports both US health and the US citrus industry, while it helps to keep food inflation down,” he said.

The CGA said although only citrus from the Western and Northern Cape are exported to the US because of outdated phytosanitary (plant health) rules, extreme urgency is needed to address the situation, because, when the tariffs come into effect, large amounts of the citrus destined for the US will be redirected to other markets. This could destabilise these markets, with a knock-on effect on the entire Southern African citrus industry.

Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.