South African table grape producers are sounding the alarm over a proposed 31% U.S. tariff that could severely damage exports
Image: Denzil Maregele/Independent Newspapers
South African table grape producers are sounding the alarm over a proposed 31% US tariff that could severely damage exports, threaten thousands of jobs, and make the industry uncompetitive.
Last month, US President Donald Trump announced a 10% tariff on all imports to the US, along with additional reciprocal tariffs for several countries, including a 30% tariff on South African goods.
However, he later backtracked, announcing a 90-day pause on higher targeted tariffs for most countries, with the exception of China, which received a 145% tariff.
Gabriel Viljoen, chairperson of the Oranje River Producers Association, said that the new tariff would make it economically unfeasible for the South African grape industry.
“It’s not economically viable for us in the chilli urban and above us due to market conditions, and it’s not going to be in there anymore," Viljoen said to the SABC.
Earlier this year, the South African Table Grape Industry (SATI) revealed that the industry had made significant strides in the US market, noting that over the last five seasons, South Africa has seen a 28% growth in fresh grape exports to the USA.
"The market penetration of the five past seasons we’ve had has increased the volume to about 28% of market share, which we send a product to the USA. So if the tariff that President Trump is putting on the table is 31%, it’s not going to be economically viable for us,” Viljoen said.
Mecia Petersen, CEO SATI, also raised concerns earlier this month, warning that the proposed tariff would have a serious effect on the industry.
"This would profoundly impact the South African table grape industry and disrupt its export flow. It also presents risks for jobs in various farming communities across South Africa."
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