A mild rise in tariffs in the US and its impact on SA agriculture

Loading player...
The U.S. government has raised tariffs against several countries under Section 301 of the Trade Act of 1974, on the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labour[1]. The South African government, private sector, and organised agriculture made submissions to the U.S. authorities against this rise in tariffs. But that message and clarification didn't find a fertile ear.
 
•⁠ ⁠A rise in tariffs that South Africa faces in the U.S. from 10% to 12.5% is not ideal, but the agricultural sector could still do better given where we are coming from: a 30% tariff. Importantly, the US has raised tariffs for a range of countries, including some of South Africa's agricultural competitors, such as Australia, Peru, and Chile, which are also at these levels. Notably, oranges, fruit juices, and nuts are still exempt from these tariffs.
 
•⁠ ⁠The U.S. remains an important market for South Africa’s agriculture, accounting for about 4% of our agricultural exports of US$15.1 billion in 2025. The main exported products include citrus, berries, grapes, wine, fruit juices, apples, pears, apricots, and nuts.
24 Jul English South Africa Investing · Food

Other recent episodes

Renewed strikes in the Middle East present risks to farming input costs

On July 6, 206, I flagged in a note to the South African agribusinesses that we are beginning to see the benefits of the likely memorandum of understanding between Iran and the U.S. aimed at ending the war on agricultural input prices. Fertiliser and fuel prices have declined notably from…
9 Jul 8 min