The 31% tariffs imposed by President Donald Trump on South African citrus imports could have significant negative effects on the country’s citrus farms and employment.
The tariff increase, part of a broader 10% baseline duty on all imports, could potentially threaten up to 35,000 jobs in the South African citrus industry, according to the farmers’ association.
South Africa, a major citrus exporter, faces a challenging situation due to the new 31% tariff imposed by the U.S. This tariff would add $4.50 per carton, significantly raising the cost of South African citrus and reducing its competitiveness in the U.S. market.
According to the Citrus Growers’ Association of Southern Africa, with 5%-6% of South Africa’s citrus exports directed to the U.S., generating over $100 million annually, this tariff could result in substantial economic losses for the industry and threaten the livelihoods of many workers.
Towns like Citrusdal in the Western Cape, which rely heavily on citrus exports to the U.S., could face severe economic challenges due to the new tariffs.
CGA chairperson, Gerrit van der Merwe, stated that these communities are particularly vulnerable, as a significant portion of their economy is tied to the success of citrus exports.
“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,” van der Merwe said. “There is immense anxiety in our communities.”
With 35,000 jobs directly linked to South Africa’s citrus exports, the impact of the new tariffs is significant.
As farmers begin packing citrus for the U.S. market this week, there is growing urgency for the South African American government to engage in negotiations with the U.S. to secure tariff reductions or exemptions.
South Africa has chosen not to retaliate against the U.S., its second-largest bilateral trading partner after China. Instead, it aims to negotiate tariff exemptions and quota agreements.
South Africa has expressed concerns that President Trump’s tariffs undermine the benefits African nations have enjoyed under the African Growth and Opportunity Act, which grants duty-free access to the U.S. market.