The new tariffs announced by U.S. President, Donald Trump, will affect 35,000 South African citrus jobs, a farmers’ association said recently.
The Citrus Growers’ Association of Southern Africa said the impending tariffs, which will be commenced on Wednesday, will be deeply damaging to South Africa’s largest agricultural export.
Trump imposed a 31% tariff on U.S. imports from South Africa on April 2, when he announced a 10% baseline tariff on all imports and higher targeted duties on dozens of countries.
In a statement made by the Citrus Growers’ Association of Southern Africa (CGA), the new tariff would place an additional $4.50 cost on each carton, making South Africa’s fruit less competitive in the U.S.
South Africa, the world’s second largest citrus exporter after Spain, ships between 5%-6% of its produce to the U.S., earning more than $100 million annually.
In his speech, Gerrit van der Merwe, CGA chairperson said “Towns such as Citrusdal in the Western Cape, which are heavily dependent on citrus exports to the U.S., could hit especially hard.
“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,” van der Merwe said.
“There is immense anxiety in our communities.
“A total of 35,000 jobs are directly connected to South Africa’s citrus exports”, he added.
With South African farmers starting to pack citrus destined for the U.S. market this week, growers have called on the government “to prioritise immediate negotiations with the U.S on tariff reductions or exemptions on citrus”.
Africa’s most advanced economy has said it will not retaliate against the U.S., its second largest bilateral trading partner after China. Instead, South Africa says it will seek to negotiate exemptions and quota agreements.
South Africa has also said Trump’s tariffs effectively nullified the benefits African countries have enjoyed under the African Growth and Opportunity Act, which grants qualifying states duty-free access to the U.S. market. The 25-year-old trade initiative is set to expire in September.
