The Citrus Growers’ Association of Southern Africa (CGA) says the imposition by the US of a 30% tariff on SA’s exports to that country will hurt local citrus farms and the rural communities they support, and also result in job losses.
Boitshoko Ntshabele, the association’s CEO, spoke to Sowetan about the effect of the new tariffs. This was just before US President Donald Trump announced a 90-day postponement of the tariffs on Wednesday to allow countries to negotiate revised deals with the US.
Sowetan: What immediate and long-term contingency plans are in place to shield the industry?
Ntshabele: The additional 30% tariff leaves citrus farmers, especially those in the Western Cape, exposed. They will likely have to divert much of their harvest to other markets. But those markets will not be able to fully absorb the citrus meant for the US. So, the tariffs mean losses, which in turn will result in job losses.
Sowetan: Has there been any engagement from the SA government on a possible diplomatic or trade response? Are industry voices being heard at the highest level?
Ntshabele: Industry voices are certainly being heard at the highest level – both nationally and provincially. It is a complex situation. We have urged the government to prioritise immediate negotiations with the US on tariff reductions or exemptions on citrus. Our primary interest is to secure continued access to the US market because, through these exports, jobs are created and the economy grows, to the benefit of the entire country.
Sowetan: You previously highlighted that increasing citrus exports to the US was key to the CGA’s target of creating 100,000 additional jobs by 2032. Does this tariff hike completely derail that plan – or is there still hope?
Ntshabele: If the additional 30% US tariff comes into effect in the long term, the likelihood that we can reach our growth target almost disappears. A lot of new fruit is projected to be coming off our trees in the next few years because of new plantings. We need to retain all our current markets, expand most of them, and find a few new ones to create 100,000 jobs by 2032. It is still possible if all role players work together and with extreme urgency.
Sowetan: How soon will farmers and exporters start feeling the financial affect of this tariff hike?
Ntshabele: As the season has just started, the financial affect will be felt quickly, but job losses are usually only seen later in the next season.
Sowetan: What happens to consignments that were already en route to the US before the tariff change? Will producers be forced to absorb those unexpected costs?
Ntshabele: We only really start packing citrus for the US this week, so that isn’t a significant issue as yet. But citrus growers in SA have been under great pressure due to extreme climate events, unfair EU trade regulations, inefficient logistics at ports, and rising input costs. The growers themselves simply don’t have the capacity to absorb all the losses caused by the new tariffs.
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