South African citrus industry weighs impact of new US tariffs

SOUTH AFRICA – South Africa’s citrus industry is carefully reviewing new tariff increases imposed by the United States government as the 2024/2025 export season approaches.

The US has applied a flat 30 per cent tariff on all imports from South Africa, raising concern among exporters who rely on the American market during key parts of their season.

Paul Hardman, chief operating officer at the South African Citrus Growers’ Association (CGA), said the industry was still working to understand the full effect of the decision. “Citrus, unlike factory-produced products, is a seasonal fruit,” he said.

“South Africa does not compete with the citrus producers of the United States. In fact, quite the opposite – we sustain customers’ interest when their local citrus is out of season, benefitting US citrus growers in the end.”

The new citrus season begins with initial shipments expected at the end of April. By July, South African growers typically begin shipping large volumes of late mandarins, a product that meets high demand in the US while American supply is low. On average, the country sends around 100,000 tonnes of citrus to the US annually.

Hardman further added that every single year, South African growers hand over buyers to their counterpart growers in places like California, Arizona and Texas.

“Citrus also plays an important role in the healthy diet of Americans. Tariffs on seasonal fresh produce can possibly increase prices for the American consumer.”

He confirmed that the CGA was working closely with US industry representatives to seek clarity on the new policy. “South Africa currently exports 9 per cent of its citrus to North America as a whole,” said Hardman.

“The American consumers have clearly developed a taste for South African citrus – with exports nearly doubling since 2017.”

Some voices within the industry expressed frustration over the mixed signals coming from Washington. “It does not make any sense to punish people which you say you want to help,” said a source, referring to previous comments by Donald Trump about offering support to white South African farmers.

Focus turns to Asia and the Middle East

Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, said government and industry leaders should now pay closer attention to building stronger trade links with other regions.

“The Middle East promises more potential for expansion, as it is not as saturated as what we observe in the EU, and there are no domestic competing farmer interests in this region,” he said.

He highlighted that South Africa accounts for just 1 per cent of Saudi Arabia’s US$25 billion agricultural import market, and only 2 per cent of the UAE’s US$22 billion agricultural imports. “There is a need for targeted promotion and marketing of products, along with government support to nudge the Middle Eastern countries to address any remaining phytosanitary barriers and tariffs for South African products in these countries,” Sihlobo noted.

In Asia, China stands out as a promising market. Despite being a top global importer of agricultural goods, South Africa made up just 0.4 per cent of China’s US$218 billion imports in 2023.

“China is already one of South Africa’s major agricultural markets,” said Sihlobo, pointing to strong demand for local fruits, wine, red meat, nuts, and grains. “However, there is room for more ambitious agricultural export efforts.”

He stressed the importance of this shift stating that the diversification approach for South Africa’s agriculture is more urgent. “Beyond the US tariffs, we will have a boom in harvesting various fruits in the coming years, which will require a market.”

South Africa now awaits further clarification from the US government on the structure of the tariff increases. While a base tariff of 10 per cent is set across all imports, the remaining 20 per cent appears to vary depending on product categories.

For now, producers, exporters, and policymakers are watching closely—and preparing for a season unlike any before.

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