South Africa’s agricultural exporters are catching a break after the US paused steep tariffs on 9 April 2025, dropping the rate from 30% to 10% for 90 days. With the rand firming and markets ticking up, this window offers a chance to rethink trade strategies and secure gains—here’s how.
A Temporary Reprieve: From 30% to 10%
South Africa’s tariff was 30%, a steep rate initially imposed alongside a 10% baseline tariff on all US imports under President Donald Trump’s “Liberation Day” announcement on 2 April 2 2025. Effective 9 April, this 30% “reciprocal” duty targeted key exports like citrus, wine, grapes, fruit juices, and nuts, jeopardising South Africa’s $23 billion trade relationship with the US, its second-largest partner. Trump’s 90-day pause, declared on 9 April 2025, at 4 PM EDT (10 PM SAST), suspends that 30% tariff for all countries except China (now at 125%), reverting South Africa’s exports to the 10% baseline. While AGOA’s zero-duty access isn’t restored, this rollback offers vital relief as the export season approaches.
Economic Relief and Strategic Opportunities
Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa (Agbiz), sees promise in the change. “The 90-day breather from the 30% tariffs will be a welcome development for South African agriculture and offers room for constructive conversation that would be valuable for long-term agricultural trade with the U.S.,” he said. The US, absorbing 4% of South Africa’s $13.7 billion agricultural exports in 2024, remains crucial for products like citrus and wine. At 10%, South Africa now aligns with competitors like Chile and Australia, regaining some footing. This pause also frees up space to explore growth in markets like China—where South Africa holds just 0.4% of a $200 billion agricultural import market—and the Middle East.
Rand’s Response and Market Upturn
The tariff pause has already rippled through South Africa’s markets. On 9 April , the rand traded weaker at around R19.75 against the dollar before the announcement, reflecting tariff fears and political jitters. Post-announcement at 4 PM EDT (10 PM SAST), it strengthened to R19.27 by day’s end, signalling market relief as the tariff burden eased.
Today, 10 April 2025, at 11:05 AM SAST, the rand stands at R19.31, a slight dip from yesterday but a marked improvement from its intra-week low of R19.93 earlier this week. Markets are gradually getting better, with the rand’s recovery and a 3.2% surge in the Top 40 Index at today’s open reflecting cautious optimism as traders eye South Africa’s next moves in US trade talks over the 90-day period.
Government’s Next Steps
The 90-day pause means South Africa will need to renegotiate with the US to address the 10% tariff, which still erodes AGOA benefits set to expire in September 2025, and the separate 25% tariffs on steel, aluminum, and autos that continue to impact vehicle exports worth $2 billion annually. The government is expected to use this period to seek exemptions or a new trade framework, while also looking to bolster regional trade within the Southern African Customs Union as a fallback.
How Exporters Can Benefit
South African exporters can turn this pause into progress:
US Market Retention: The 10% tariff matches competitors, helping producers hold US demand as the season nears. Locking in orders now could ensure volumes.
Negotiation Leverage: This window allows South Africa to push for AGOA renewal or tariff relief, underscoring its reliability as a US supplier.
Diversification Push: With time to manoeuvre, exporters can target unsaturated markets like China, Saudi Arabia, and the UAE, where demand for quality produce offers growth potential.
A Chance to Reset
The 90-day tariff pause turns a looming setback into a tactical opening. The 10% tariff, AGOA’s expiration, and global volatility linger as challenges, but South Africa’s agricultural sector can use this period to shore up US trade, negotiate effectively, and diversify strategically. With markets showing gradual improvement and July 8 as the deadline, proactive steps will shape how well the industry capitalises on this shift.