Implications of US 30% reciprocal tariffs on SA agriculture: what you need to know

THE imposition of a 30% reciprocal tariff on South African agricultural exports by the US represents a turning point in bilateral trade relations.

- BERNARD MANGANAYI and SHEKANI ZONDO

This protectionist measure, seemingly implemented in response to South Africa's trade barriers, threatens to undermine decades of carefully cultivated economic cooperation while exposing vulnerabilities of the export-dependent agricultural sector.

The timing could hardly be worse for South African producers, as many are still recovering from pandemic-related disruptions and facing increasingly challenging global market conditions. In 2024, South African total agricultural exports recorded about $13.7 billion (R250.5bn); the US absorbed about 4% of this total.

Over the years, several high-value agricultural subsectors have relied on African Growth and Opportunity Act (AGOA) to capitalise on US market access for a wide range of commodities. South Africa's main agricultural exports to the US include citrus, wine and grapes. American importers have become loyal buyers of premium South African citrus fruits, with the US market offering better margins than many markets.

Similarly, the wine industry, having invested heavily in building brand recognition and distribution networks in the US, now confronts the prospect of undermining years of market development effort.