US tariff threat casts shadow over South Africa’s grape exports
Industry leaders call for urgent action as August deadline looms
SOUTH AFRICA – South Africa’s growing table grape exports to the United States could take a hit if the Trump administration enforces a 30% tariff starting 1 August.
Industry leaders say the delay in government response could undo years of steady progress.
The South African Table Grape Industry (Sati) has confirmed that while only 3% of local grapes go to the US market, that small share has grown steadily over the last five years.
US buyers favour South Africa’s counter-seasonal supply. But that competitive advantage now faces strong pressure from producers in Chile and Peru, who already enjoy more favourable trade conditions.
“We risk losing the foothold we’ve built,” said one senior Sati official. “Even a small tariff can shift buying decisions when you’re competing in such a price-sensitive market.”
Exporters and associations across the board have expressed concern, not just for grapes but for wine and other high-value produce.
In 2024 alone, South Africa exported 306 million litres of wine to the US, worth US$562 million. But with the 30% tariff deadline less than a week away, the country still has no clear resolution with Washington.
Government silence sparks industry frustration
Terry Gale, chairperson of Exporters Western Cape, said: “We note there has been no further action or intervention from the Presidency. The lack of urgency from government is extremely concerning.”
Gale added that the Government of National Unity (GNU) seems “unable to appreciate the severity of the situation.”
Agriculture Minister John Steenhuisen confirmed earlier this week that trade talks with the US had stalled. He blamed the gap in ambassadorial representation in Washington as one factor.
The concern goes beyond tariffs. Industry leaders worry that the entire grape export value chain could suffer – from farm labourers to cold storage workers and logistics companies.
Can the G20 Presidency offer a lifeline?
South Africa holds the G20 presidency from December 2024 through November 2025. The theme, “Solidarity, Equality, and Sustainability,” will frame the upcoming Leaders’ Summit in Johannesburg on 22 and 23 November.
President Ramaphosa has asked government departments and industry players to prioritise market diversification. But experts say this is not a short-term solution.
Building new markets takes years of trust and investment, and most producers simply don’t have the resources to shift quickly.
Wandile Sihlobo has stressed the need for greater state capacity to speed up trade talks. Meanwhile, Boitshoko Ntshabele, CEO of the Citrus Growers Association, said South Africa should use its G20 leadership role to hold focused discussions with visiting trade ministers.
“We have learned since April’s tariff turmoil that such possibility exists,” Ntshabele said. “If we don’t use the opportunity of hosting G20 leaders to hold sidebar talks, then when will we?”
For grape exporters banking on continued growth in the US, time is running out.
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