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How South Africa’s fruit industry plans to deal with US trade tariffs

Earlier this month The South African reported on how American president Donald Trump, who had previously backed South African farmers, is now imposing tariffs that will affect their livelihoods.

A 30% tariff on key exports, including citrus, wine, sugar cane, and beef, will take effect on 1 August.

This will all but end the duty-free access South Africa enjoyed under the Africa Growth and Opportunities Act (AGOA).

While citrus exports may avoid major disruption this season, sectors like table grapes and stonefruit are facing a more immediate challenge.

With their peak export seasons fast approaching, producers need to act swiftly to mitigate potential losses.

South African fruit growers are hoping that late US talks might ease the trade tensions. In the meantime, exporters are being urged to diversify.

“We have to do everything we can to retain our position in the UK and Europe,” said Alwyn Dippenaar, Chairman of the South African Table Grape Industry.

Looking East

According to Fruitnet, markets in Asia and the Middle East are now also high on the radar.

Despite recent difficulties in China for South African grape growers, renewed trade cooperation could offer a lifeline.

China’s move to expand free trade to 53 African countries, including South Africa, may provide much-needed relief and improved competitiveness for local fruit exporters.

India, another key market, is also in focus. As such, a senior Indian delegation is expected to visit South Africa soon to fast-track a potential trade agreement.

High import tariffs in India have so far hindered some product categories. In response, the local industry is rolling out awareness campaigns for South African apples, pears, citrus, and avocados in the sub-continent.

A new campaign led by South African citrus growers meanwhile aims to reposition grapefruit as a vibrant summer fruit in Europe.

Can SA fruit growers weather the storm?

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