Trade association warns that new duty would make South African table grapes uncompetitive in the US market, potentially doubling prices for American consumers and threatening jobs in South Africa

ZA Sati grape harvest

Representatives of the South African table grape business have expressed their “deep concern” about the US administration’s plan to impose a 30 per cent tariff on imports from South Africa, effective 1 August 2025.

In a statement, trade association South African Table Grape Industry (SATI) warned that the duty might undermine its members’ recent progress in growing their market share Stateside, as well as threatening jobs and livelihoods in South Africa itself.

“The 30 per cent tariff could undermine the industry’s progress in growing exports to the US market,” it said. “As part of SATI’s market diversification strategy, increasing volumes to the US has been a key focus. An uncompetitive tariff would pose a significant barrier, possibly resulting in a missed opportunity for the industry.”

Export volumes from South Africa to the US might account for only about 3 per cent of total exports, but these have grown rapidly over the past five seasons at a compound annual growth rate of 20 per cent between 2020/21 and 2024/25.

Last season, South Africa exported around 2.2mn 4.5kg cartons – equal to about 9,900 tonnes – of table grapes to the US, for a total value of approximately R360mn (US$20mn).

The USA is an important and growing market for South African table grapes, built on over two decades of reliable counter-seasonal supply,” the group continued. “However, a 30 per cent tariff will make South African table grapes uncompetitive in the US market, which could be further exacerbated should Southern Hemisphere competitors like Peru and Chile face a lower tariff.”

SATI added that it saw room for further growth in the market, if South Africa could compete on a “fair and equal” footing with other exporting countries.

With a 30 per cent tariff, it estimated US consumers would need to pay almost double the average price for grapes, or US$44 per 8.2kg carton in real terms.

“We are disappointed but will work with the government to improve the South Africa trade offer to the US and hopefully be back to better trade terms. This is an evolving matter,” said Mecia Petersen, CEO of SATI.

She added: “We urge the South African government to engage in constructive negotiations with the US government to find a mutually beneficial solution. SATI remains committed to working alongside government and industry stakeholders to safeguard the resilience and competitiveness of South Africa’s fruit exports.”