Sugar farmers brace for US tariffs upheaval

IN THE wake of the recent 30% tariff hike imposed by the US, South Africa’s sugar and automotive industries are bracing for significant upheaval.

- BONGANI HANS [e-mail]

Economists warn that these tariffs could spell disaster for local businesses, jeopardising exports and leading to alarming job losses.

Economist Miyelani Mkhabela has warned that losing the market will collapse the industry.

“People have a reason to panic because the tariffs will make it difficult for South African products to appeal to the American market,” said Mkhabela.

He said small industries faced the danger of collapsing because although the normal trade deal between South Africa and the US might be restored after the end of Trump’s presidency, “four years is a lot for a company.”

He said South Africa could not easily find a country that could replace the American market, which “4s bigger than what we are sending to the whole of Africa”. However, he said the African economy would recover after four years as it recovered from the global financial crisis and “is still recovering from the global health (Covid-19 pandemic).