The industry is “deeply concerned” over the impact of the new US tariffs
The introduction of a 31 per cent import tariff on South African exports to the US has caused great concern across the country’s fresh produce export industry.
Now, all South Africans are confused and do not quite know where they stand, following the reversal of the previous US decision and the granting of a 90-day grace period.
Exporters are wondering whether they are now on a 10 per cent tariff rate, or still on 31 per cent.
The South African Table Grape Industry (Sati) said this morning (10 April) it was deeply concerned about the impact any new tariff on South African exports to the US would have on the sector.
Yesterday the citrus industry stated that a 31 per cent tariff rate would make South African citrus exports uneconomical.
Observers wondered if the negotiation period allowed by the US president would include South Africa, given his recent remarks about the country.
If it indeed gets the opportunity to put its case to the Trump administration, just where does South Africa now fit in the pecking order of around 90 countries who now within 90 days must negotiate new trade deals?
“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,” said Mecia Petersen, chief executive of Sati.
”Over the last five seasons, the South African industry has observed a 28 per cent growth of 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,” she continued.
”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.
“The South African producers provide the American consumers with necessary fresh produce at a time when they (US grape growers) are out of season,” said Petersen.
“Should the implementation of a 31 per cent 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,” she explained. “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 per cent tariff after the three-month reprieve.
”Should a 31 per cent tariff be imposed on South Africa, it would create an uncompetitive market for South African producers and exporters,” Petersen warned.
“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 added.
