SA Rooibos producers call for exemption from US tariffs

SA Rooibos Council argues that flagship beverage poses no competitive threat to the US economy

- YOGASHEN PILLAY

THE South African Rooibos Council (SARC) has called for the reduction or the complete removal of the 30% tariff imposed by the United States on Rooibos products.

The SARC on Tuesday said the US currently accounted for approximately 5% of total Rooibos exports, and the tariff posed a considerable threat to the industry's financial health and market viability.

Dawie de Villiers, chairperson of the SARC, emphasised that their paramount priority was to support Rooibos producers and exporters during this challenging period.

"We are actively engaging with stakeholders and exploring all opportunities to ensure Rooibos remains competitive in the US market, while also strengthening our presence in other international markets," he said.

De Villiers highlighted the unique nature of Rooibos, which is exclusively cultivated in a small region of the Western Cape, South Africa, stating that it posed no competitive threat to the US agricultural production or domestic manufacturing.

"As such, it poses no competitive threat to American agricultural production or domestic manufacturing," he said.

"In fact, more than 90% of Rooibos exported to the US is shipped in bulk for blending, packaging and marketing by American companies, which supports value addition, stimulates local business activity and creates jobs within the US market."