Western Cape premier Alan Winde has expressed frustration over the country's failure to conclude a trade deal with the US. This comes as some of his province's most critical industries — citrus and wine among them — are set to be badly affected by US President Donald Trump's imposition of 30% tariffs.
Winde said trade ties with the US were critical to growth and jobs in the Western Cape, and South Africa at large, and that while seeking other markets was worthwhile, it was not a quick solution to Pretoria’s rift with Washington.
“The tariffs, at whatever percentage they are, make America much more expensive for Americans, but they make us less competitive. For the Western Cape, our citrus, our wines, our agri-export products that we’ve always got into the market through Agoa [the African Growth and Opportunity Act], all of that is under huge threat.”
Numerous attempts to broker a trade deal drew a blank this week, and on Thursday the department of trade, industry & competition had all but given up hope of securing any concessions from their US counterparts.
Winde said missing two deadlines for a trade deal placed the South African economy in an unthinkable position. He implored ministers in the government of national unity (GNU) and American negotiators, including US trade representative Jamieson Greer, to double their efforts to find a deal.
I’m very frustrated; in fact I’m angry. We should have put a deal together by now. We missed two deadlines. And we must not give up. We must keep pushing for a better deal. We can’t afford to lose jobs
— Alan Winde, Western Cape premier
“I’m very frustrated; in fact I’m angry,” Winde said. “We should have put a deal together by now. We missed two deadlines. And we must not give up. We must keep pushing for a better deal. We can’t afford to lose jobs.”
Calling the global trade environment a “crazy world”, Winde said it was worth using the trade tension to re-examine “30 years of policies [that are] not giving South Africa growth and jobs”, even if Trump’s leveraging tariffs to pressure countries into making political decisions is unconventional.
“We’ve got to relook our policies,” he said. “If they’re not working, we’ve got to change. Unfortunately, they are linked to this trade agreement, so we as a country, looking at the national [government], the GNU and the national ministers working on this, I am saying, ‘Come on, guys, we’ve got to push harder, and we’ve got to really make sure we are protecting jobs.'”
According to the Bureau for Food and Agricultural Policy, South Africa’s citrus exports to the US were valued at $132m (R2.40bn) by 2022. In July, South Africa was expected to export 7-million cartons of citrus to the US. A 30% tariff will place an additional $4.25 cost per carton, making the product uncompetitive, according to the Citrus Growers Association.
The US is one of the most important markets for South African wine, importing 25.5-million litres, worth nearly R800m, in 2022.
The country's automotive sector is also reeling from the imposition of 25% tariffs by the Trump administration. In 2024, South Africa exported 24,681 vehicles to the US, the third-largest export destination for automotive exports. Vehicles worth R27bn were shipped to the US in 2023, behind Germany and Belgium.
The Automotive Business Council said the auto sector accounted for 64% of all trade between the US and South Africa under the Agoa agreement, generating R28.6bn in export revenue.
According to the White House, the tariffs on South Africa will come into effect on August 7.
President Cyril Ramaphosa said on Friday South Africa would keep negotiating with the US, hoping to clinch some form of a deal. He said the government had submitted a framework deal that aimed to enhance mutually beneficial trade and investment, and said all channels of communication remained open to engage with the US.
“The government is finalising a package to support companies that are vulnerable to the reciprocal tariffs. The package consists of ... measures to assist companies, producers and workers affected by the tariffs on South African exports to the US,” Ramaphosa said.
Trade, industry & competition minister Parks Tau said the country would focus on its strategy of diversifying trade and finding other markets for its goods and products. An export support desk would be established to update exporters on development and provide advisory services, he added.
South Africa proposed to the US that it would import 750-100 petajoules of liquefied natural gas (LNG) for 10 years, valued at $12bn. It also offered agricultural market access by simplifying US poultry and pork exports, which were restricted due to certain disease outbreaks, unlocking $91m in trade.
The country also committed to open market access for US blueberries, subject to necessary protocols. The government said South African firms would invest $3.3bn in US industries such as mining and metals recycling, and committed to joint investments in critical minerals, pharmaceuticals and agricultural machinery.
An executive order published by the US on Friday said South African goods loaded onto a vessel at the port of loading, and those in transit as a final mode before daylight, seven days after Friday, and which were shipped before October 5, would not be subject to the new duty.
Donald MacKay, founder of XA Global Advisors, said some of the levers to secure a deal with the US were within the government's control, such as opening the South African market for American blueberries, which the US can export when South Africa is not growing them.
Shane Naidoo, global treasury and trade specialist at Nedbank Mid Corporate, said the initial tariff announcements in April had already affected exporters and importers in various sectors and their global trade strategies, irrespective of the outcome of the current trade talks.
“We have identified that our clients are already exploring and engaging subject matter experts, or are adapting their long-term globalisation plans to ensure business survival. These strategies are with a view to seeking a more efficient supply chain system and reducing trade barriers,” Naidoo said.
Francois Baird, founder of the FairPlay Movement, a lobby group for the local poultry industry, urged the government not to make it easy for US poultry to enter the country. He said the International Trade Administration Commission — which sets tariffs on imports to South Africa — had recommended anti-dumping duties on exporters such as the US.
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