Citrus growers call on president to urgently intervene about 30% US tariff
With mere days to go before Friday, when the US tariff of 30% on South African goods kicks in, the Citrus Growers' Association of Southern Africa wrote to President Cyril Ramaphosa, calling on him to urgently intervene on behalf of rural communities in the Northern and Western Cape, where citrus exported to the US is grown and where livelihoods rely on the US-SA citrus trade.
'This week, with the tariff deadline on Friday, is one of great anxiety for the citrus growers in the Western and Northern Cape. These two provinces annually export about 7 million cartons of citrus to the US,' Dr Boitshoko Ntshabele, CEO of the Citrus Growers' Association of Southern Africa (CGA), says.
The association has asked Ramaphosa to urgently facilitate an extension of the current 10% US tariff beyond 1 August, which would allow for negotiations to reach a mutually beneficial trade agreement. The CGA also requested that, if a general extension of the deadline is not possible, an urgent request for a specific extension for seasonal fresh produce should be secured.
'Seasonal fresh produce is perishable and cannot be stored for extended periods like other trade products. We just passed the midpoint of the 2025 export season, which means that hundreds of thousands of cartons of citrus are ready in packhouses to be shipped to the US over the next few weeks. The implementation of a 30% tariff on 1 August will mean most of this fruit will be left unsold.'
ALSO READ: Experts question if SA has a plan for US tariffs, Tau says here it is
SA citrus growers no threat to US farmers—no reason for US tariff of 30%
South African citrus growers do not pose a threat to US growers or jobs, as they sustain demand when local US citrus is out of season, benefiting US consumers. 'Citrus as a source of nutrition also helps to keep America healthy. Should we not be able to secure a favourable trade deal or the concession for fresh produce, local job losses before the next season will be a certainty,' Ntshabele says.
Gerrit van der Merwe, chairman of the CGA, says being a grower in Citrusdal, he is very worried about the effect the tariffs will have on the town and the wider Cederberg municipality. 'Citrus forms the economic heart of the area.
'Not just farmers and farm workers will feel the impact, as local businesses and even the funding of social support programmes will be affected too. The social fabric of some rural towns in the Western and Northern Cape is threatened.
'Local growers also say a 30% tariff will not only stifle future growth but lead to the eventual destruction of between 500 and 1 000 ha of land that would simply become unprofitable.'
ALSO READ: Trump tariffs implemented in same week SA citrus growers pack for US export
Letter to the president about US tariff
In the letter to the president, the CGA highlighted that, while much focus has been placed on market diversification in the past few weeks as a general answer to the trade turmoil, certain realities must be considered.
'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 some citrus be diverted away from the US, the diversion could very well depress the price in these markets through oversupply, negatively impacting the entire Southern African citrus industry.
'The citrus industry has the potential to create 100 000 additional jobs by 2032 because of new plantings, but for this to be realised, we require the expansion of every market—including the US, China, India, the European Union, and others,' the CGA says in the letter.
Ntshabele says while the CGA acknowledges measures of progress made in the US trade negotiations, it is of the opinion that more direct and active contact with the US is necessary before the 1 August deadline.
ALSO READ: Devastating impact of US tariffs on SA automotive sector even before implementation
US tariff much worse than losing Agoa status
Arthur Kamp, chief economist at Sanlam Investments, says South Africa's direct trade exposure to the US is relatively modest but not insignificant.
In 2024, goods exports to the US amounted to R156.8 billion (7.6% of total South African goods exports and 2.1% of GDP). The US announced a 30% tariff increase for South Africa.
'After taking the 25% US import tariff increases on aluminium, steel, and motor vehicles into account, while also adjusting for exclusions, we estimate the overall effective US tariff increase for South Africa is likely to be less than 20%.'
However, he points out that this is still a large increase and is likely to cause a sharp decrease in South African exports to the US, including motor vehicles. 'We note that vehicle exports to the US were already significantly down last month, indicating manufacturers readjusting and finding new markets for finished goods, as total vehicle exports were up by 3%.
'While some exclusions may also be rescinded, it is important to understand that the impact will be far greater than losing our AGOA (African Growth and Opportunity Act) status alone.
'Downward revisions to South Africa's gross domestic product (GDP) forecast for 2025 should result, while combined with heightened geopolitical risk, the effect on business sentiment and investment could be more pronounced, particularly given South Africa's dependence on the US for foreign capital, especially portfolio capital, which is highly liquid.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
an hour ago
- Daily Maverick
What does it mean to be South African? Navigating identity in a complex democracy
In a Daily Maverick webinar asking 'What does it mean to be South African?', professors William Gumede and Pierre de Vos joined Zukiswa Pikoli to delve into identity, citizenship and inclusion 30 years into South Africa's democracy. Here are 10 takeaways. 1. Defining South Africanness: A contested and plural concept The webinar highlighted that defining 'South Africanness' is contested terrain, especially 30 years into democracy. Unlike monocultural countries, South Africa's identity is plural and layered, based on multiple identities and an acceptance of difference rather than a single shared culture, language or race. 2. The Constitution as a 'civic religion' While South Africa boasts diverse cultures and languages, the Constitution and its democratic institutions serve as a common civic identity, a 'civic religion' that binds citizens together. It's seen as a crucial pillar for a country with a deeply divided past. 3. Beyond Western models of nationhood Traditional Western models of nationhood, often based on shared culture or language, don't fully apply to South Africa. The country's identity must be more embracing, incorporating the best elements of its diverse past, present, histories and cultures. 4. Addressing xenophobia and exclusion A critical concern raised is the potential for national identity to be used for exclusion, leading to xenophobia and other forms of discrimination. The discussion emphasised the need for a shared commitment and recognition of interdependence to foster a functional constitutional democracy. 5. The role of, and pressure on, the Constitution The Constitution, with its core values of human dignity, equality and freedom, is an aspiration. However, it faces immense pressure as visible inequalities persist, leading some to question whether these values are truly shared or merely promises unfulfilled. The document itself cannot act; it is about how people and institutions behave. 6. Transforming individual identity towards a broader South Africanness A significant challenge is to transform individual, narrow self-identities (e.g. based on race or ethnicity) into a broader South African identity. This requires more engagement in families, schools, workplaces and communities to foster a sense that one's specific group identity is just a piece of a larger South Africanness. 7. Cultivating empathy and solidarity across difference A crucial missing element in South Africa's nation-building project is empathy and solidarity across different groups. People tend to have empathy for those similar to them, but extending this compassion to those who 'don't look like you' is vital for a stronger common South Africanness. This needs to be actively taught and nurtured, starting in schools. 8. The peril of politicised identity The country's national identity is deeply intertwined with politics. When governance is poor, corrupt or incompetent, or when politicians exploit divisions for votes, it undermines the common South African project. There is a strong call for consequences for politicians who sow division. 9. Reimagining commemorations and recognising diverse contributions Commemorative days and national memory-making need to move beyond focusing solely on politicians or political parties. There's a strong need to memorialise the diversity of South African society, including forgotten and excluded individuals, artists, institution builders and sports stars, celebrating a broader range of contributions to the nation. 10. The importance of recognising and refining indigenous identities While recognising and bringing back indigenous identities erased by apartheid is crucial, it is equally important to critically evaluate and remove anti-democratic or anti-constitutional elements within these identities (e.g. patriarchy). The goal is to integrate the valuable aspects of indigenous identities with the constitutional value of equality. The discussion highlighted the ongoing journey of defining and strengthening South Africa's identity, emphasising the complexities of diversity, the role of foundational values and the need for active engagement from all citizens. DM
Daily Maverick
an hour ago
- Daily Maverick
GNU must take blame for not acting to avert imposition of Trump's exorbitant tariffs
The recent decision by US President Donald Trump to increase tariffs from 10% to 30% on most South African imports, effective this past Friday, 1 August 2025, is a damning indictment of our foreign policy shortcomings. At the heart of this unfolding crisis is the African Growth and Opportunity Act (Agoa), which for nearly 25 years has given South African goods duty-free access to US markets. In 2023, more than $3-billion worth of exports flowed to the US under Agoa, sustaining jobs and livelihoods in key industries such as automotive manufacturing, agriculture, and mining. It's difficult to overstate just how beneficial Agoa has been. The US is South Africa's second-largest export market, and Agoa alone accounts for more than $2-billion in exports annually. Entire value chains are built on this preferential access. This has resulted in tens of thousands of jobs created and maintained in export-related industries, especially in the automotive and agricultural sectors. Yet, what once felt like abstract diplomatic tensions have now resulted in exorbitant tariff hikes that could wipe out margins for exporters and put thousands of jobs at risk across key sectors — from citrus and wine to auto manufacturing and metals. While some may point fingers at an increasingly protectionist White House, the Government of National Unity (GNU) must accept responsibility for what is in most parts a self-inflicted wound. Those in the GNU say that jobs and the economy are their number one priority. But when it came to protecting one of our largest export markets and tens of thousands of South African jobs, they sat on their hands and watched the tariffs roll in. This diplomatic misstep will be measured in job losses, declining export revenue, and dwindling investor confidence. Instead of strategic engagement, disarray ensued. Civil society organisations like AfriForum and Solidarity secured high-level meetings in Washington, while our official diplomatic presence remained directionless. Undermining national trade posture Even the Democratic Alliance was accused of undermining our national trade posture through uncoordinated political freelancing, a move that seemingly cost MP Emma Powell her role as the DA's International Relations spokesperson. At the core of Washington's growing frustration is South Africa's erratic and often contradictory foreign policy. Despite claiming to be non-aligned, our government has taken deliberate steps that signal the opposite. The ANC's hosting of senior Hamas representatives in Pretoria, Minister Naledi Pandor's infamous meeting with then Iranian president Ebrahim Raisi, and South Africa's ambiguous stance on Russia's war in Ukraine have all sent provocative messages that clash with global democratic norms. These actions carry real-world consequences, as this latest tariff decision makes painfully clear. Even under the more diplomatic Biden administration, South Africa failed to rebuild trust. We did not use the opportunity to engage, negotiate or reassure. And now, under a more transactional Trump presidency, patience has run out. What is clear is that South Africa urgently needs a foreign policy rooted in clear principles and strategic interests, instead of nostalgia and ideology. Our diplomacy must be led by the state, above party politics, and laser focused on three core objectives: expanding trade and economic growth, defending human rights, and advancing democracy on the continent and beyond. The current bipolar approach, with mixed signals from different actors, is unsustainable and deeply damaging. A government-led, coherent strategy to stabilise and grow our trade relationship with the US is now mission-critical. This strategy must include five immediate actions: South Africa must reassert official leadership in managing our engagement with Washington. Splinter groups and political parties must refrain from back-channelling for narrow political gain. Trade policy is national policy. South Africa must speak with one clear, credible, and united voice. Our government must directly engage with the US Congress, which holds immense sway over trade legislation. Lawmakers on Capitol Hill need to hear not just about Agoa's benefits for South Africa, but for the US too. More than 500,000 American jobs are tied to trade with us. We should use that as leverage. South Africa must table a credible trade and investment plan that showcases the mutual benefits of partnership. Priority sectors like automotive exports (valued at more than $1.2-billion annually), citrus, wine, metals and green technology must be at the forefront. We must position ourselves as a reliable partner for US capital, technology, and innovation as America eyes new partners in the global energy transition. A full economic risk assessment must be urgently commissioned to measure the impact of the proposed tariffs on jobs and industry. Such a study would not only quantify the damage, but guide our negotiating position and enable smarter policy responses, including sector-specific relief or adjustment mechanisms. Perhaps most urgently, we must appoint a capable and credible ambassador to Washington. This needs to be someone who understands both diplomacy and economics. The job now requires high-stakes negotiations to restore market confidence and protect jobs. That seat has remained vacant or ineffective for far too long. The truth is that South Africa's foreign policy has long lacked a future-focused economic dimension. It is too often discussed not in terms of trade, growth or a digital future, but in the context of how liberation movements can remain in power. This mindset has locked us into outdated alliances, including with authoritarian regimes that are neither democratic nor innovative. Meanwhile, we've neglected crucial relationships with long-standing partners like the US, and failed to appoint ambassadors, attend key forums or secure investment guarantees. What is clear is that we cannot afford to respond with more muddled messages, delayed decisions and ideological posturing. If we do not act with clarity, urgency and humility, we risk permanently losing one of our most important trade relationships. Now more than ever, our foreign policy must serve South Africa's economic interests. Jobs, industries and future growth hang in the balance. DM
Daily Maverick
an hour ago
- Daily Maverick
South African political parties' internal democracy problem
Several of South Africa's political parties seem to have little intention of allowing their members to elect their leaders. 'No electoral congress is on the cards for MK.' uMkhonto Wesizwe (MK) party spokesperson Nhlamulo Ndhlela was perfectly straightforward when asked by Daily Maverick this week whether the party had any plans to allow members to elect party leaders. advertisement Don't want to see this? Remove ads MK has never made any pretence of this: all its leaders have been 'appointed' by former president Jacob Zuma, who leads the party's 'high command' — all of whose members were hand-picked by Zuma. Most recently, MK urged its members to be patient while Zuma decides who MK's next secretary-general will be, with the party's head of presidency, Magasela Mzobe, quoted as telling members: 'The president will soon call the national leadership and announce who will take over the SG position. He is still assessing; he asked that he not be rushed.' The MK party, in other words, is not a democracy. Democratic political parties periodically hold electoral conferences, at which delegates, acting on behalf of broader constituencies, cast votes for their leaders. But MK is not the only South African party being run like a fiefdom. Read more: Former MK party secretaries did many 'wrong things', says Zuma after Shivambu's axing Where is ActionSA's electoral congress? ActionSA, the party founded by former DA Johannesburg mayor Herman Mashaba, adopted its interim constitution in January. That constitution states that the party will hold a 'People's Convention' every five years, at which the party president and other office-bearers will be elected. advertisement Don't want to see this? Remove ads It states that this electoral conference must be held 'within 9 (nine) months after the 2024 national government elections' — yet almost 15 months after the elections, this has not happened. Significantly, the ActionSA constitution also states: 'The People's Convention may not be held 18 (eighteen) months prior to an election of a general nature.' It's unclear whether this description would encompass the 2026 local government elections, which have been pencilled in for between 2 November 2026 and 1 February 2027. If it does, the party could have missed the window in which the conference should have been held. Asked by Daily Maverick on Monday why ActionSA had not yet held an elective conference and when it intends to do so, party spokesperson Matthew George pointed to another clause of the constitution, which reads: 'A membership audit must confirm that branches have been established in 70% of the wards of the country before the People's Convention can be called or upon the presentation of a resolution signed by 60% of the members of the Party.' George said the party was 'working hard to achieve' the branch target. He said, 'Importantly, in giving due effect to both constitutional provisions, we have sought not to elevate one above the other. As such, the matter of the People's Convention currently resides with the Senate, ActionSA's highest decision-making body in the absence of the Convention. The Senate will formally communicate the outcomes in due course, first to our internal structures and then to the media.' advertisement Don't want to see this? Remove ads advertisement Don't want to see this? Remove ads Even when the People's Convention is eventually held, the party's constitution decrees that not all positions are voted on. Of the top three ActionSA leadership positions — president, deputy president and chairperson — only the president is voted in at the elective conference. The constitution states that the chairperson and deputy president positions are 'appointed for a 5 (five) year term linked to the term of the President, by the elected President'. Patriotic Alliance is the playground of its 'Founders' The Patriotic Alliance (PA) did not respond to Daily Maverick's questions on Monday, but in its 12 years of existence, it is unclear whether anyone has been able to challenge leader Gayton McKenzie in a vote. Its constitution makes it clear that the supreme authorities in the party are the 'Founders' — 'one of the three individuals who originally established the Party': Gayton McKenzie, businessman Kenny Kunene and former journalist Charles Cilliers. The PA constitution says that party leaders are 'selected' — not elected — 'not based on popularity', but on their ability to deliver results. It openly states: 'The Patriotic Alliance rejects the inefficiencies of traditional hierarchies and elective conference-driven systems.' advertisement Don't want to see this? Remove ads The closest the PA gets to participatory democracy is hosting an annual general meeting at which members are supposed to be able to 'nominate candidates for consideration by the Founders to key Party positions'. advertisement Don't want to see this? Remove ads However, 'The AGM does not have the authority to elect or confirm key Party positions unless the Founders neglect to approve or reject the nominations within 30 days of the AGM.' McKenzie suspended Kunene as party deputy president last month after Kunene was found at the house of an accused hitman — but he presumably retains his status as a 'Founder'. Read more: 'Continue Kenny's good work' — McKenzie appoints PA's Liam Jacobs to replace Kunene Other parties do practise democracy In other local parties, there is genuine contestation for leadership positions. Historically, the most significant of these has been the ANC's internal elections, since the winner of that contest has always gone on to be the president of South Africa. That may not be the case for the next victor, due to be elected in December 2027. The DA's Willie Aucamp confirmed to Daily Maverick that the DA's next electoral congress will take place next year, on 11 and 12 April. The Freedom Front Plus, meanwhile, held its congress in February, at which Corné Mulder was voted in to replace Pieter Groenewald as leader. advertisement Don't want to see this? Remove ads The Economic Freedom Fighters (EFF) pay lip service to robust democratic structures, but its People's Assembly was described by Zimbabwean journalist Hopewell Chin'ono in 2024 as an example of 'guided democracy': a system in which 'democratic processes, such as political party leadership elections, are allowed to exist, but are heavily influenced or controlled by a central authority or dominant political force or individual' — in this case, Julius Malema. As South Africa's political landscape fragments into personality-driven outfits, the barely-there visibility of internal democracy in parties such as MK, EFF, ActionSA and the Patriotic Alliance hollows out the very idea of representative politics. That only a handful of parties still hold genuinely competitive leadership elections underscores how rare true accountability has become. The genuine danger is also that it acclimatises South Africans to autocratic leadership — in a context where, to quote US President Franklin D Roosevelt, 'People who are hungry and out of a job are the stuff of which dictatorships are made.' DM
