The feared has become a reality. As of today, 5 August 2025, South Africa’s agricultural sector is scrambling to respond to the US’s unilateral decision to impose a 30% tariff on a significant portion of its exports. After months of intense but ultimately unsuccessful negotiations, the looming deadline is now a stark reality for farmers and exporters across the country.
This report compiles what we know up to this point, drawing on official government statements, industry reactions, and expert analysis.
Government’s Response
The South African government, led by the departments of International Relations and Cooperation (Dirco) and Trade, Industry and Competition (dtic), has confirmed the failure of its efforts to secure a more favourable tariff rate. In a joint media statement, the ministers acknowledged their submission of a “comprehensive and ambitious Framework Deal” in May, but the US decided to move forward with the reciprocal tariff, which is being applied to numerous countries globally.
The government’s focus has now shifted from negotiation to mitigation. An “Economic Response Package” is being rolled out with the following key components:
Relaxing Competition Laws: A “Block Exemption” to the Competition Act is being developed. This measure is designed to allow exporters to coordinate activities, share market information, and achieve economies of scale to better compete in new markets.
Export Support Desk: A dedicated point of contact has been established to offer tailored advisory services to affected companies. The desk will provide guidance on alternative markets, entry processes, and compliance requirements, linking exporters with South African embassies and high commissions abroad.
Financial Assistance: The government is finalising details on a support program that will include a working capital facility and a plant and equipment facility. This is meant to assist companies in absorbing the tariff’s impact and building long-term resilience.
Market Diversification: The government is actively working to strengthen trade partnerships with other African nations, as well as countries in Asia, Europe, and the Middle East. They specifically highlighted successes in opening new markets in China and Thailand for products like citrus.
A Short Grace Period for In-Transit Goods
In a small glimmer of relief, the US Executive Order provides a specific timeframe for goods already on their way. Exports that are:
- Loaded onto a vessel and in transit before 12:01 a.m. Eastern Daylight Time on August 8, and
- Entered for consumption or withdrawn from a warehouse for consumption before 12:01 a.m.
- Eastern Daylight Time on 5 October will still be subject to the old 10% tariff, not the new 30% rate. This gives exporters a narrow window to get their existing shipments into the US market before the full weight of the new tariff hits.
AgriSA’s Grave Concerns and Strategic Recommendations
AgriSA, the farmers’ federation, has been vocal in its assessment of the situation, labelling the tariff as an “immediate and severe blow.”
Economic Threat: AgriSA CEO Johann Kotzé has warned that the tariffs pose a significant threat to South Africa’s R250 billion export-driven agricultural sector. The organisation has amplified the South African Reserve Bank’s warning of potential job losses reaching up to 100,000, primarily in agriculture and the automotive sector.
Diversification Challenge: Kotzé has stressed that while market diversification is a valid long-term strategy, “supply chains cannot be redirected overnight.” The immediate impact on producers heavily reliant on the US market is therefore expected to be particularly painful.
Call for a Coordinated Plan: In response to the crisis, AgriSA has called for a strategic, five-point plan for the government. This includes strengthening diplomatic talks with the US, tackling trade barriers in other markets, and boosting South Africa’s trade negotiation capacity with a team of expert negotiators.
Industry Players Weigh In: Citrus, Wine, and Beyond
The agricultural sub-sectors most exposed to the US market have been quick to share their concerns and strategies.
Citrus Growers Association (CGA): The CGA has raised alarms about the timing of the tariff, which coincides with the peak citrus season. They argue that the 30% tax will put South African exporters at a severe disadvantage against competitors like Chile and Peru, which enjoy a lower tariff. The CGA has highlighted the risk to thousands of jobs in rural communities that depend on citrus farming.
Agricultural Business Chamber of South Africa (Agbiz): Agbiz chief economist Wandile Sihlobo has acknowledged that the road ahead will be “challenging” and that the “profound uncertainty” is costly to businesses. He noted that while negotiations may continue, South Africa’s new tariff rate is significantly higher than what many other countries have received, which puts the country at a disadvantage.
Other Players: From the wine industry, there is concern that the tariff will be passed on to US consumers, making South African wines uncompetitive. While some in the industry are looking for ways to absorb costs and double down on brand value, the consensus is that the market will become significantly tougher. Similarly, other high-value horticultural products like table grapes, avocados, and macadamia nuts face similar pressures, prompting a push for long-term strategies to build resilience through new market penetration.
The introduction of the 30% US tariffs marks a significant and painful turning point for South Africa’s agricultural export sector. While the government has swiftly moved to announce mitigation strategies and a plan for market diversification, the immediate impact on profitability and job security for key industries like citrus, wine, and other fresh produce remains a grave concern. The coming weeks and months will test the resilience of South African producers and the effectiveness of the government’s support measures as the sector grapples with the task of rebuilding trade partnerships and finding new opportunities in a challenging global market.
For Assistance and Further Information
Exporters affected by the new tariffs can contact the Department of Trade, Industry and Competition’s (dtic) Export Support Desk for guidance and assistance.
For the Americas (including the US): Ms. Nthatisi Moraloge, [email protected]
General dtic inquiries: Mr. Karabo Modimokwane, [email protected] or call (012) 394-1164
dtic’s General Customer Contact Centre: 0861 843 384 (National) or +27 12 394 9500 (International)