Craig Lowman, CEO and co-founder of TUNL, and Aretha Cooper, the company’s COO, join Business Day Spotlight host Mudiwa Gavaza to discuss the impact of US tariffs on the exports of small businesses in South Africa.
TUNL, which has created an “SME export index” that tracks 1,850 merchants to gauge market health, recorded a 52% slump in volumes in September when compared to a baseline set in early April, Cooper says. Volumes were down 40% in October, she adds.
The sharp decline is the result of protectionist US trade policies, in particular the de minimis rule. Previously, goods valued at less than $800 attracted no duties, but new policies have increased the costs on such products by 30%-40%.
Lowman details how local businesses have been affected, how they are responding and the realities of shifting their export efforts to other parts of the world.
TUNL is a logistics company founded five years ago to make shipping affordable and accessible for South African SMEs. At present the company helps more than 3,000 local businesses to export their goods to 160 countries.
Its customers include brands such as Ciovita, Versus Socks and Freedom of Movement.
Join the discussion:
Producer: Demi Buzo
Business Day Spotlight is an Arena Podcasts Production.
For more episodes subscribe to Simplecast
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.