New tariffs announced by U.S. President Donald Trump could have dire consequences for South Africa’s citrus industry, potentially threatening 35,000 jobs and disrupting a key agricultural export valued at over $100 million annually.
On April 2, President Trump imposed a sweeping 10% baseline tariff on all U.S. imports, alongside targeted duties of up to 31% on select countries—including South Africa.
Reuters reports that the move has sparked concern among South African citrus growers, who now face a sharp increase in costs to access the U.S. market.
According to the Citrus Growers’ Association of Southern Africa (CGA), the new tariffs would add approximately $4.50 to the cost of each carton of fruit, significantly eroding the competitiveness of South African citrus in the United States. The U.S. currently accounts for between 5% and 6% of South Africa’s citrus exports.
Severe economic fallout
Chairperson of the CGA, Gerrit van der Merwe, warned that towns like Citrusdal in the Western Cape, which rely heavily on citrus exports, could suffer severe economic fallout.
“The severity and immediate nature of the impending tariffs could mean that towns like it now face either increased unemployment or maybe even total economic collapse.
“There is immense anxiety in our communities,” he said.
- With the citrus harvest and packing season for the U.S. market now underway, industry leaders are urging the South African government to intervene diplomatically.
- The CGA has called for urgent negotiations with the U.S. administration to secure tariff reductions or exemptions.
- South Africa has indicated that it will not retaliate against the tariffs, given the strategic importance of its trade relationship with the U.S.—its second-largest bilateral trading partner after China. Instead, the country is pursuing dialogue aimed at securing exemptions or quota-based agreements.
The new tariffs also raise questions about the future of the African Growth and Opportunity Act (AGOA), a U.S. trade initiative that has, for 25 years, provided qualifying African countries with duty-free access to American markets.
South African officials argue that the tariffs effectively negate AGOA’s benefits, just months before the agreement is set to expire in September.
Nigeria braces for impact
In Nigeria, the government is also bracing for the impacts of the 14% reciprocal tax imposed on the country, as it acknowledged that the new U.S. trade policy would disrupt the country’s non-oil exports.
- The government noted that while oil has long dominated Nigeria’s exports to the US, non-oil products—many previously exempt under the African Growth and Opportunity Act (AGOA) now face potential disruption.
- It added that the new 10% tariff on key categories may impact the competitiveness of Nigerian goods in the U.S.
According to the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the government has rolled out policy, financing, and infrastructure measures to help Nigerian businesses adapt.
