The Small and Medium-sized Enterprise (SME) Export Index shows that exports by South African SMEs to the US have dropped by 46% since April, with small direct-to-consumer businesses hit hardest, says South African international shipping platform TUNL.

The SME Export Index is based on real shipping volumes from a fixed cohort of 1 850 South African exporters and provides a monthly barometer of how tariffs are affecting small South African businesses that ship globally.

“Although the new 30% reciprocal tariffs were announced in April, consumers were largely shielded by the $800 de minimis waiver, which allowed packages valued at under $800 to enter the US duty-free,” says TUNL CEO and co-founder Craig Lowman.

This waiver was revoked on August 29, meaning all packages are now charged a tariff, irrespective of the value of the goods. Combined with the reciprocal tariffs, this significant change has led to a sharp drop-off in US shipments in September as US consumers balk at import costs, he notes.

“Our data shows a 46% drop in South African SME export volumes to the US last month, compared with April 1, which was chosen as a baseline because it falls before the new tariffs were announced,” he says.

“SMEs represent jobs, entrepreneurship and the future of South African cultural exports. The US tariffs have landed like a sledgehammer on our merchant community of small exporters, who are being priced out of the US market,” Lowman says.

Additionally, the US has traditionally been a big growth market for local SMEs. However, with tariffs at this level, it is almost impossible to compete on price without destroying margins, highlights TUNL COO Aretha Cooper.

“For SMEs, there is no room to absorb that kind of cost. This is a global macroeconomic situation and affects many small businesses around the world,” she says.

Further, transparent costs are critical to convert browsers into buyers, which is why TUNL helps local SMEs with the tools to clearly display duties and taxes at their checkouts, she adds.

“However, for some merchants, it makes more sense to pivot their exports to other geographies where existing trade agreements can provide relief from duties,” she says.

Additionally, TUNL will release data from the SME Export Index monthly to ensure SMEs’ voices remain part of the national tariff conversation.