The South Africa’s Department of Agriculture, in response to the 30% reciprocal tariff imposed by the US, has begun taking measures to safeguard market access, preserve jobs, and ensure trade promotes shared prosperity.

Agriculture Minister John Steenhuisen expressed deep concerns over the tariffs, stating, “These measures are deeply unjust and pose a serious threat to jobs, livelihoods, and the competitiveness of one of South Africa’s most globally integrated sectors.”

This announcement comes as the South African Wine and Citrus Growers’ Association of Southern Africa (CGA) appeals to the government for intensified negotiations to prevent long-term damage to trade, investment, and employment in their industries. 

Last Thursday, the US confirmed the tariffs, which will take effect unless a better deal is negotiated. 

South Africa’s agricultural sector heavily relies on exports, valued at $13.7 billion in 2024. Though citrus represents less than 5% of total exports to the US, certain regions depend significantly on this market.

The value of South African wine exports to the US is approximately R660 million annually, supporting around 270,000 jobs across the industry. 

Formal negotiations are underway by the Department of Trade, Industry & Competition. In addition, Steenhuisen is actively engaging with Trade Minister Parks Tau and other key officials to emphasize the urgency of the situation.

“This is not just about trade policy; it’s about farmworkers, exporters, and rural economies that rely heavily on the US market,” he noted, revealing that he has established a team within his department to provide technical and market-specific support for the negotiations.

Christo Conradie, Stakeholder Engagement, Market Access & Policy Manager at SA Wine, stated that the tariff decision places the industry at a severe disadvantage compared to countries enjoying lower tariffs. 

“The US remains a key market for South African wine, and maintaining access under fair terms is vital for the sustainability of our sector and broader agricultural value chain.”

The South African Table Grape Industry (SATI) is also worried about potential secondary effects on global markets, including increased supply from countries facing high tariffs in South Africa’s primary markets, such as the EU and UK.

CGA CEO Boitshoko Ntshabele warned that the impact would be felt most in rural communities in the Northern and Western Cape provinces, which export to the US. He noted that Brazilian orange juice had been exempted from US tariffs.

As the citrus season progresses, local growers have managed to expedite shipments to the US, mitigating some immediate tariff effects. However, Ntshabele cautioned that without a favourable trade deal, the next export season will fully feel the tariff’s impact.

Source: Business Live