As a range of South African exporters brace for the impact of the 30% US import tariffs, the country’s first black woman winemaker might have to cut production, and is looking for alternative markets.
Ntsiki Biyela, winemaker and founder of Aslina Wines, told Business Times this week that the US was a huge market for the young wine company, taking half its production.
“We currently don’t know [what the impact will be] ... We were, anyway, looking for other markets for expansion as a business.”
Aslina Wines, established in 2016 in the wine heartland of Stellenbosch, offers wines from cabernet sauvignon to chardonnay and chenin blanc.
According to South Africa Wine, the US is one of the most important markets for South African wine, taking 25.5-million litres worth nearly R800m in 2022. Last year total global exports of 306-million litres were worth $562m (about R10bn).
Now is the time to look for any big or small ways in which you can streamline your operations, reduce waste and negotiate better terms
— Thomas McKinnon, chief growth officer at SME services provider Lula
Biyela said the tariff hike due to take effect at the end of the month had given Aslina Wines fresh incentive to explore its long-standing desire to export to African markets.
“Our continent has been at the top of our search to expand our market. [We are considering] downscaling, yes, until we get other markets, we will keep navigating the market space.”
Thomas McKinnon, chief growth officer at SME services provider Lula, said that while products that offer exceptional quality, niche appeal or a distinct competitive advantage might be resilient to the tariffs, it was crucial for exporters to prepare for volatility.
“Now is the time to look for any big or small ways in which you can streamline your operations, reduce waste and negotiate better terms with suppliers. The tariffs will have a knock-on effect that we will more than likely see across the board, and SMEs need to be ready and prepared.”
He said the tariffs effectively neutralise the benefits of the African Growth and Opportunity Act (Agoa), jeopardising livelihoods supported by the exports of citrus, wine and textiles.
Christo Conradie, market access and policy manager at South Africa Wine, previously told Business Times that the organisation has been deeply concerned since President Donald Trump first announced “reciprocal” tariffs in April.
“The US is a high-value market for South African wine, offering strong growth potential and premium price points. It is currently the ninth-largest destination by volume and the fourth largest by value for South African wines.
“While it accounts for approximately 6.4% of our wine exports, these new tariffs will undermine our competitiveness, reduce foreign exchange earnings, and put jobs and investment at risk across the wine value chain.”
He said South Africa Wine was engaging with the government and all relevant stakeholders to assess the full impact of the tariffs.
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