SA sugarcane farmers face uncertainty as US tariff policies threaten livelihoods

SOUTH African sugarcane farming associations have raised alarms as potential tariff increases by US President Donald Trump threaten to disrupt the already precarious equilibrium of the local sugar industry.

- YOGASHEN PILLAY

Dr. Thomas Funke, CEO of SA Canegrowers, on Monday urged the government to continue to prioritise negotiations with the US on tariff reductions and exemptions to help create certainty in the agricultural industry.

Funke said the US did not produce sufficient volumes of sugar to meet its domestic demand, and it therefore relies on imports to fill these gaps.

“Although the punitive 30% export tariff on South Africa has been suspended for 90 days, a 10% blanket tariff still remains in place. Even a 10% tariff on exports has negative consequences for South African sugarcane growers and the rural economies that depend on sugar production for jobs and livelihoods,” Funke said.

“Up to now, the US has had a system in place to allocate import quotas to sugar-producing countries, designed to serve local demand for both US households and industrial users of sugar.