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SA agricultural exports to US surge 26% in tariff window

Wandile Sihlobo says some exporters may have taken advantage of tariff pause during second quarter

A fruit packing faciliy in Tzaneen.  Picture: SUPPLIED
A fruit packing faciliy in Tzaneen. Picture: SUPPLIED

SA exported $3.71bn worth of agricultural produce in the second quarter, up 10% from the same period a year ago, with producers having likely ramped up exports in anticipation of the Trump tariffs that kicked in this month.

Data from Trade Map shows SA’s agricultural exports to the US surged by 26% in the quarter under review, raking in nearly R3bn.

“Given ongoing concerns about the higher tariffs SA faces in the US, it is worth highlighting that some exporters may have taken advantage of the 90-day pause on the higher tariffs and exported more volume than usual during that period,” chief economist at Agbiz Wandile Sihlobo said.

“Notably, SA’s agricultural exports to the US surprisingly increased by 26% in the second quarter of 2025, from the same period a year ago, at $161m. The composition of the products hasn’t changed; it is mainly citrus, wine, fruit juices and nuts, among other typical agricultural exports to the US,” he said.

“The fact that SA generally has a large fruit harvest also contributed to this huge increase, which far surpassed the average typical quarterly growth in exports to the US, which is about 9%.”

The SA government has taken measures to mitigate the 30% tariffs on SA imports, including agricultural goods. The government last week outlined measures it will take to shield exporters from the tariffs, which will include relaxing antitrust rules to allow firms to jointly shoulder shipment costs, intelligence and infrastructure as part of a big push to keep goods competitive and trade diplomacy intact.

Under minister of trade, industry & competition Parks Tau’s proposals, exporting companies will be given the green light to co-ordinate funding and share export-related market information. Beyond sharing shipment costs, companies will be allowed to share storage costs and co-ordinate on insurance costs.

Exporters will also be allowed to collectively market SA goods as a brand in the export market, while co-ordinating on joint financing and development of export infrastructure.

In another lifeline for exporters, companies will be allowed to collectively negotiate protocols and compliance with quality specifications or standards.

This is as Pretoria pivots towards regulatory flexibility as an urgent counterweight to unilateral trade actions by the US, its second-largest trading partner.

The competition reprieve might come in handy as firms look to grow in alternative markets due to the US trade wars, which have all but killed the African Growth & Opportunity Act (Agoa).

The non-renewal of Agoa will end duty-free status for 25% of SA exports to the US, which is projected to dent exports by $397m, including agricultural goods.

“SA should expand market access to some key Brics countries, such as China, India, Saudi Arabia and Egypt. The emphasis on the Brics grouping should be on the need to lower import tariffs and address artificial phytosanitary barriers that hinder deeper trade within this grouping,” Sihlobo said. “The discussion in Brics should move beyond the general rhetoric of intentions to meaningful trade arrangements.”

SA’s exports to the rest of the continent accounted for 40% of the total value of goods exported in the quarter, with maize meal, apples and pears, and sugar the leading products.

Exports to the EU, historically one of SA’s largest trading partners, accounted for 22% of agricultural products in the quarter, with citrus, apples, pears, dates, pineapples, avocados, guavas, mangos, wine and grapes the primary goods exported to the bloc.

“As a collective, Asia and the Middle East were the third-largest agricultural markets, accounting for 21% of the total agricultural exports in the second quarter of 2025,” Sihlobo said. “The exports to this region primarily included citrus, apples and pears, nuts, wool, maize, beef, mutton, wine, berries and fruit juices, among other products.”

Khumalok@businesslive.co.za

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