30% US tariff: ‘There is still time to negotiate a better deal’

By Michelle van der Spuy

The fact that the United States’ increased import tariff on South African products will only take effect from 1 August creates an opportunity for further negotiations, says Minister of Agriculture John Steenhuisen.

On Monday, US President Donald Trump announced higher import duties on goods from South Africa and 13 other countries. Speaking during a media briefing on his department’s 2025–’26 budget, Steenhuisen added that more countries could expect similar announcements as early as Tuesday.

He pointed out that even though only 4%–6% of South Africa’s agricultural exports are destined for the US, these exports are highly concentrated in specific sectors, particularly citrus, table grapes, wine and nuts.

Some citrus producers export exclusively to the US market, he said. The increased tariffs will therefore have a significant impact on them.

With the US planning to impose a 30% import tariff on South African goods, these products will no longer be competitive compared with imports from countries facing lower tariffs.

“I believe there is still room for negotiation,” Steenhuisen said. “The fact that the tariff will not come into effect on 9 July, as initially threatened, suggests there’s an opportunity to reach an agreement with the US.”

US Wants “More Ambitious” Trade Plan from SA

Steenhuisen confirmed that he and Parks Tau, Minister of Trade, Industry and Competition, met with Jamieson Greer, the US Trade Representative, during the South African delegation’s visit to Washington in May.

“America is attempting to correct its trade imbalances with several countries,” he said. “At the meeting, the US had a detailed record of South Africa’s trade balance with China, the UK and the European Union. They went through each line item and demanded explanations for discrepancies in import tariffs.”

The US’s main concerns with South Africa’s trade profile related to vehicles, mining and other heavy equipment, and certain manufactured goods, not agricultural products.

“Within the agricultural sector, we’ve already made significant progress in addressing what the US sees as trade irritants. These have included trade suspensions related to bird flu and some technical issues involving blueberries, among others.”

The US remains dissatisfied, however, with South Africa’s draft framework agreement, and is calling for a more “ambitious plan”.

“We now need to focus our efforts on this,” he said. “We have until the end of the month to present an alternative agreement. The Department of Agriculture will collaborate with other government departments to put forward a proposal that can help avoid the imposition of the 30% tariff.”

Exploring New Markets While Preserving Existing Ones 

Since President Donald Trump’s announcement on Monday night regarding increased tariffs, Steenhuisen has already begun engaging with US trade representatives in pursuit of a resolution.

In parallel, investigations are underway to identify which existing foreign markets for South African exports can be expanded, and which new markets might be accessible in the future.

That said, finding new markets must complement – not replace – efforts to maintain existing ones, Steenhuisen cautioned. “I don’t want to create the impression that we can simply divert our products elsewhere. It’s not that easy. Everything must be done to defend and preserve our current markets.”

Tariff Uncertainty Raises Concerns for Citrus and Grape Industries

It is too early to predict whether the newly announced US import tariffs will result in immediate job losses, Steenhuisen says. “The citrus industry is currently in peak season. Only time will tell whether operations on some farms will come to a standstill.”

Dr Boitshoko Ntshabele, CEO of the Citrus Growers’ Association of Southern Africa, notes that only citrus from the Western and Northern Cape is exported to the US, but some rural towns in these provinces, such as Citrusdal, are heavily dependent on the American market.

“The 30% tariff would wreak havoc on entire communities,” he warns. Producers in these two provinces may have little choice but to redirect shipments to other countries. This diversion could flood alternative markets with high volumes, potentially leading to oversupply and declining prices for all South Africa citrus producers. 

Ntshabele agrees with Steenhuisen that a mutually beneficial trade agreement between South Africa and the US was still within reach, or, at the very least, that an exemption for seasonal fresh produce could be negotiated.

Mecia Petersen, CEO of the South African Table Grape Industry (SATI), says the industry is disappointed by the US’s decision but will continue working with government to strengthen South Africa’s trade offer.