SA farmers brace for impact of US tariffs

FARMING Associations across South Africa have expressed serious concern regarding the future of the agricultural sector following the announcement from US President Donald Trump indicating that tariffs of up to 30% could be levied on South African exports.

- YOGASHEN PILLAY

The announcement has left uncertainty hanging over the agricultural industry, which relies heavily on trade with the US.

Agricultural Business Chamber of SA (Agbiz) chief economist, Wandile Sihlobo, said they were yet to receive full details of how the tariffs will apply. “It is perhaps more important to work on the assumption that the duty-free access South Africa enjoyed through African Growth and Opportunity Act (Agoa) is probably over at best, will be limited,” Sihlobo said.

“We now know that a baseline tariff of 10% will apply to all imports from all countries. It remains unclear if there are differences in the remaining 20% (that makes up the rest of the 30%) duties levied on South Africa. We will need to see if there may be some differences product by product, but that will be clear upon one or two releases more information.”

Sihlobo said that from a domestic policy perspective, the industry remained convinced that South Africa should seek a Free Trade Agreement with the US when the dust settles.