As Trump tariffs kick in, SA farmers explore alternative markets

The country was slapped with a 30% reciprocal tariff now on pause for 90 days — on exports to the US with some exemptions, but these don’t include agricultural products

- Lyse Comins & Sheree Bega

South Africa’s farmers will probably have to look for alternative markets in Africa, Asia, the European Union and among fellow Brics+ members for their produce in the face of a blanket 10% tariff on United States imports that President Donald Trump has imposed on many countries around the world.

South Africa was initially set to be slapped from Wednesday with a 30% so-called reciprocal tariff on all exports to the US — except commodities such as coal, platinum group metals, gold, manganese and chrome — under measures Trump claims are aimed at rebalancing his country’s trading relations with countries that have “ripped it off” for years.

But in a last minute about-turn Trump announced on Wednesday that he was suspending these individual reciprocal tariffs on its more than 75 trading partners, and instead applying a 10% base tariff across the board for 90 days, to allow for negotiations.

The exception was China, against which he has hiked the tariff to 125%, as a trade war between the two economic giants escalates.

Given Trump’s unpredictability, no one can confidently rule out the 30% tariffs against South Africa being back in place after three months — particularly in the light of his recent sustained attacks, including what he claims is the persecution of the white minority in the country. Ironically, the tariffs would affect a sizable number of white farmers whose interests Trump says he is championing.

A 30% tariff on South Africa would hurt local farmers who export citrus, wine, grapes and nuts to the US, said FNB senior agricultural economist Paul Makube.

"Any loss of market is negative from a farmer’s perspective. Although it is not a loss per se, the imposition of tariffs complicates the trading environment as it may increase costs, or lower revenues, as well as reduce competitiveness in the United States markets," Makube said.