US Tariff Adjustments Provide Partial Relief for South African Agricultural Exporters
Recent modifications to US tariffs have offered a temporary boost to some South African agricultural exports, but significant challenges remain for the sector, particularly concerning access to the US market for products like table grapes and wine.
In the second quarter of 2025, South African agricultural exporters capitalized on a temporary tariff pause, leading to a 26% year-over-year increase in exports to the US, reaching $161 million.This “front-loading” of products took advantage of the more favorable conditions before higher tariffs took effect.
Though, concerns persist that increased tariffs will negatively impact overall agricultural product exports. Specifically, table grapes and wine - not included in the modified rates – face a 30% import tariff in the US. This disadvantage is amplified as South Africa enters its table grape export season.
The situation could worsen if the African growth and Opportunity Act (AGOA), which provides lower duty access to the US for South Africa and other african nations, is not renewed. Without AGOA, tariffs could rise to approximately 33%, factoring in previous Most Favoured Nations Tariff rates prior to the recent adjustments. This would place South African exporters at a considerable disadvantage compared to competitors like Chile and peru, who currently face tariffs around 10%.
The South African goverment is actively negotiating for improved tariff access in the US, but these negotiations are proving challenging. The US has already imposed higher tariff rates on other countries, including the EU and Japan, which now face tariffs between 15% and 20% despite recent trade agreements.
The challenges are further complicated by ongoing efforts to mend foreign relations with the US, amidst concerns about the spread of misinformation regarding South Africa.
While the recent tariff modifications benefit a limited number of agricultural industries, they do not address the broader sector’s exposure to US tariffs. South Africa’s agricultural exports to other global markets remain strong, and improved access to the US would complement efforts to diversify and expand export markets to support sector growth.
