Kouga – Following America’s unprecedented 30% tariff on South African exports, the Kouga Business Forum has mobilised to support local businesses, calling for swift national intervention while committing to monitor developments and protect regional livelihoods.
According to AFP News, the 30% tariff is the highest in sub-Saharan Africa and comes as diplomatic relations between South Africa and the United States are in tatters over a range of domestic and international policies.
President Cyril Ramaphosa stated that South Africa would continue to engage with America with a view to normalising trade relations while diversifying its export markets, particularly in Africa.
Government officials said on August 4 that the looming tariffs could cost the country around 30,000 jobs, with the United States being South Africa’s second-largest trading partner by country after China.
Meanwhile, AFP News further reported that the South African Reserve Bank recently warned that the levy could affect up to 100,000 jobs, with unemployment already at more than 30%.
Officials said that the tariffs will particularly hit South Africa’s agriculture, automotive and textiles sectors, although 35% of exports are exempted, including copper, pharmaceuticals, semiconductors, lumber articles and certain critical minerals.
Lieb Swiegers, Chairman, Kouga Business Forum, said that KBF is deeply concerned about the 30% tariff imposed by the United States on South African exports, effective 8 August. “This decision poses a direct threat to Kouga’s citrus industry and the broader local economy,” said Swiegers.
Citrus industry under pressure
He said that Kouga’s citrus sector, already facing global competition and rising input costs, is particularly vulnerable.
“Export margins will shrink drastically, with the tariff adding up to R75 per carton, making Kouga citrus uncompetitive in the United States market,” said Swiegers.
“Packhouses and logistics firms may scale back operations, leading to job losses, especially among seasonal workers.”
“Small and medium farms, which lack financial buffers, risk closure or reduced production.”
Broader economic consequences
Swiegers added that the impact extends beyond agriculture.
“Local suppliers and service providers, from transport to packaging, face reduced demand,” said Swiegers. “Municipal revenue may decline due to lower business activity and employment.
“Youth employment and rural livelihoods are at risk, worsening existing socio-economic challenges.”
Swiegers said that the tariff regime is not just a trade issue; it’s a local economic emergency.
“Kouga’s citrus industry is a cornerstone of our economy, and we call on national authorities to act swiftly and transparently,” said Swiegers. He said that KBF stands ready to support affected businesses and protect local livelihoods.
Swiegers further said that they will continue to monitor developments and provide regular updates to the business community.
According to AFP News, Foreign Minister Ronald Lamola said that they were focused on negotiations for a new deal despite the “very extreme provocation” on the part of the United States. He said that the 30% tariff was “inscrutable” considering that imports from South Africa only represented 0.25% of total United States imports.
“Moreover, South Africa poses no trade threat to the United States economy nor its national security,” said Lamola.
He argued that the imports supported the United States industry and did not compete with it.
Lamola said that an example was that South African agricultural exports were “counter-seasonal” and so filled gaps in the United States market without replacing domestic produce.
