SA rooibos industry pushes back against 30% US tariffs

South Africa's rooibos industry is pushing for the removal of a new 30% US tariff, arguing the speciality tea poses no competition to American agriculture and supports US jobs

- By Octavia Avesca Spandiel

South Africa's rooibos industry has been hit with a new trade problem after the US implemented a 30% tariff on all South African imports, including rooibos.

The South African Rooibos Council (SARC) has begun urgent engagements with the Department of Trade, Industry and Competition (DTIC) and the US Embassy in Pretoria in an effort to secure tariff relief.

UNIQUE STATUS

Speaking to Farmer's Weekly, Marthane Swart, secretariat of the SARC, said the council is deeply concerned about the impact of the new tariff on exports to the US.

"The US has imposed a 30% tariff on rooibos as part of broader measures against South African imports. We believe it should be removed, because rooibos is exclusively grown in South Africa, poses no competition to US agriculture and, in fact, supports American businesses and jobs through blending, packaging and marketing in the US," Swart said.

According to the council, Rooibos should be exempt from the tariff because it is a low-volume speciality product that cannot be cultivated in the US.

"Internationally, noncompeting agricultural imports are often granted low or zero import duties. Rooibos fits squarely into this category," Swart explained.

IMPACT ON EXPORTS

While it is too early to fully measure the financial consequences, industry leaders warn that the tariff could erode margins and reduce competitiveness on the US herbal tea market.