Thousands of citrus cartons, hectares at stake if US tariff is not renegotiated
With the US import tariff of 30% on goods from South Africa to take effect by the end of the week, the citrus industry stands to lose between 500 ha and 1 000 ha, that will simply become unprofitable, should President Cyril Ramaphsoa not intervene.
The Citrus Growers’ Association of Southern Africa (CGA) has implored the President to urgently act on behalf of rural communities in the Northern and Western Cape provinces where citrus cultivated for the US market forms the backbone of many livelihoods.
The two provinces alone export seven-million cartons of citrus to the US every year.
The CGA has asked Ramaphosa to urgently facilitate an extension of the current 10% US tariff on South African imports beyond August 1, which would allow for negotiations toward a mutually beneficial trade agreement.
The association also requested that, should a general extension of the deadline not be possible, that an urgent request for a specific extension for seasonal fresh produce be secured, stressing that seasonal fresh produce is perishable and cannot be stored for long unlike other trade products.
While the CGA acknowledges that measures of progress have been made in the US trade negotiations, the organisation believes more direct and active contact with the US administration is necessary before the August 1 deadline.
The 2025 citrus export season has reached its mid-point, meaning hundreds of thousands of cartons are ready in packhouses to be shipped to the US over the next few weeks.
The implementation of the 30% tariff from August 1, however, will mean most of this fruit will be left unsold.
The CGA says South African citrus growers do not pose a threat to US growers or jobs, as the imports sustain demand when local US citrus is out of season, which benefits US consumers, says CGA CEO Dr Boitshoko Ntshabele.
Should South Africa not be able to secure a favourable trade deal with the US, or a concession for fresh produce, local job losses before the next season will be a certainty, he stresses.
CGA chairperson Gerrit van der Merwe adds that, being a grower himself in Citrusdal, he is very worried about the effect the US tariffs will have on the town and the wider Cederberg municipality.
“Citrus forms the economic heart of the area. Not just farmers and farmworkers will feel the impact, but also local businesses and even the funding of social support programmes will be affected as well. The social fabric of many rural towns in the Western and Northern Cape provinces is being threatened,” he explains.
The CGA, in its letter to Ramaphosa, acknowledges that much focus has been placed on market diversification in the agriculture sector in the past few weeks, as a general answer to the trade turmoil; however, certain realities must be considered, it argues.
The organisation explains that citrus is grown for designated markets, each with their own precise market and plant health specifications. Therefore, it is not easy to simply divert citrus from the US and find a new market.
“Should citrus be diverted away from the US, the diversion could well depress the price in these markets through oversupply, which will negatively impact the entire Southern African citrus industry,” the CGA states.
The citrus industry is one of few that is poised to grow employment, being set to create 100 000 additional jobs by 2032 owing to new plantings. However, for this to realise, expansion of every market is necessary – the US, China, India, the EU and others.
Through direct engagements in recent days, the US and the EU agreed on the EU facing a 15% US import tariff, rather than the 50% that had initially been proposed and the 30% that was more recently put on the table before agreement was reached on 15%.
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