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Thursday, September 18, 2025

Clarity Secured on U.S. Tariff Treatment for South African Exports Post-July 2025

NewsClarity Secured on U.S. Tariff Treatment for South African Exports Post-July 2025

South Africa Wine has received official confirmation regarding the treatment of South African goods exported to the United States following the expiration of the 90-day tariff reprieve on 9 July 2025. This follows consultations with U.S. Customs and Border Protection (CBP) and other stakeholders.

Tariff Treatment for Goods in Transit

According to CBP, South African goods that are shipped and in transit before 12:01 a.m. EDT (06:01 SAST) on 9 July 2025 will incur an additional 10% ad valorem tariff upon arrival in the U.S. This measure aligns with the Reciprocal Tariff Executive Order issued on 2 April 2025.

Goods that are not in transit by the cut-off time and arrive after the deadline will face a 30% additional tariff, applied on top of existing tariff benefits under the African Growth and Opportunity Act (AGOA).

AGOA’s Status and Adjustments

While AGOA remains valid until 30 September 2025, its provisions are now effectively superseded by the new Reciprocal Tariff framework. AGOA-eligible products shipped during the current 90-day reprieve window will attract AGOA tariffs plus an additional 10%. Products shipped after 9 July and not already in transit will be subject to AGOA tariffs plus 30%, significantly increasing the cost burden for exporters.

Ongoing Diplomatic and Industry Engagement

In response to these developments, South Africa Wine is collaborating with industry and government partners, including Agbiz, and maintains regular communication with government departments such as the Department of Trade, Industry and Competition (DTIC), Department of Agriculture, Land Reform and Rural Development (DALRRD), Department of International Relations and Cooperation (DIRCO), as well as key business platforms like BUSA and NEDLAC, to pursue a negotiated solution.

Encouragingly, a direct call between President Cyril Ramaphosa and U.S. President Donald Trump took place last week, signalling a positive step toward deeper diplomatic engagement.

Further Updates to Follow

South Africa Wine will continue to monitor the situation closely and will keep industry members informed of any tariff-related developments as they are confirmed. The organisation remains committed to supporting its members through this evolving trade environment and advocating for fair and sustainable trade conditions with the United States.

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