SA agriculture face uncertainty US imposes 30% tariffs
Experts say South Africa’s agricultural exporters are bracing for major losses from the 30% tariff that the US has imposed on selected goods.
It was due to come into effect on Wednesday, but President Donald Trump has delayed its implementation to next month.
South Africa's agricultural sector has been benefiting from duty-free access under the African Growth and Opportunity Act.
AGOA is due for renewal in September, but it's thought South Africa's country's perceived alignment with Russia and China, plus ongoing disputes around intellectual property and market access, may influence Washington’s decision to extend the trade agreement.
Speaking at the Institute for Security Studies seminar, Chief Economist at Agbiz, Wandile Sihlobo, said tariffs will be felt most in provinces like KwaZulu-Natal, Mpumalanga and the Western Cape, where high-value exports like citrus, wine, and macadamia nuts rely on American demand.
" I think the long-term and medium-term approach for South Africa still has to go back to thinking about how we find a bilateral trade agreement with the US.
"But for the near term, though, the current moment is quite uncertain, and it will be costly as to how do we navigate the access for the near-term while knowing where we are going, which is the bilateral trade agreement at some point."
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