
Trump's tariffs will hurt the same SA farmers he claimed to support
Trump recently amplified (false) claims of persecution against white South Africans, and authorised a refugee resettlement program for Afrikaner farmers.
For those farmers that remain in South Africa, Trump now finds his trade policies on a collision course with their livelihoods.
A 30% tariff on key exports, including citrus, wine, sugar cane, and beef, will take effect on 1 August, ending the duty-free access South Africa enjoyed under the Africa Growth and Opportunities Act (AGOA).
Back in April, Trump instituted 30% tariffs on South Africa for all goods imported into America. After facing significant backlash, Trump hit pause on the tariffs for 90 days.
Critical US-SA trade talks, including a diplomatic visit by SA president Cyril Ramaphosa to the White House, yielded little progress.
On Monday this week, the US president confirmed that he would be subjecting imports from South Africa to the 30% tariff.
'It doesn't make sense to us to welcome South African farmers in America and then the rest that stays behind, to punish them,' Krisjan Mouton, an established citrus farmer in Citrusdal, told Reuters .
'It's going to have a huge impact…it's not profitable to export anymore to the USA.'
South Africa is the world's second-largest citrus exporter after Spain. The industry earns around $100 million annually from the US market.
Though the US accounts for only 6% of total citrus exports from SA, many farms are built around meeting America's specific size and phytosanitary standards.
It makes finding new markets a logistical nightmare, while increasing shipments to other countries may cause an oversupply.
Industry leaders have also argued that SA citrus has never competed with US production, but has rather complemented it.
'South African citrus growers do not threaten US citrus growers or US jobs,' said Citrus Growers Association (CGA) chairperson Gerrit van der Merwe.
'In fact, our produce sustains interest and demand for citrus when local US citrus is out of season, eventually benefitting US growers when we hand over consumers at the end of our season.'
The new 30% tariff will now remove South Africa's favoured trade status, making South African citrus uncompetitive compared to fruit from South America and Australia.
While three-quarters of South Africa's freehold land is white-owned, they will not be the only casualties. Thousands of farmworkers and fruit packers could be laid off too.
'A 30% tariff would wreak havoc on all communities that have, for decades, focused on producing specifically for the US market,' said CGA chief executive Boitshoko Ntshabele.
In Citrusdal alone, the CGA estimates that up to 35 000 jobs are on the line.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Citizen
8 minutes ago
- The Citizen
Is buying a car with a balloon payment a debt trap?
A new shiny car is not in everybody's budget these days and car financers are trying to help them with balloon payments. It is so tempting. That lovely shiny car will cost so much less per month and by the time the balloon payment comes around, you can always trade it in and pay off the balloon payment. And buy another new shiny car with its own balloon payment. How could this be a debt trap? If you consider choosing a balloon payment when financing a new car, you are not alone. South African banks report that as many as a third of car loan customers choose the maximum balloon payment to reduce their monthly repayments. However, Ernest North, co-founder of car and home insurance platform Naked, says it is wise to consider the long-term impact before committing to a balloon payment for your new car. 'Balloon payments have become increasingly popular in South Africa due to the rising costs of living, including the higher costs of car purchases and ownership. However, many consumers go for a balloon payment without understanding that they could get caught in a debt trap four or five years down the line.' ALSO READ: Why balloon payments can become a burden – and how to manage them Lower monthly instalments – that balloon at the end of the term… North says although lowering your monthly repayments can help you to stretch your salary a bit further and potentially afford a better car, the lump sum at the end of the loan term is the sting in the tail. 'While a balloon payment can be a useful financial planning tool, many people find that they struggle to afford the final repayment.' A balloon payment is a large amount that you agree to repay at the end of your car finance term, usually between 20% and 35% of the car's value, with 40% being the maximum most banks would allow. During the term, you pay lower monthly instalments, but it is because you are not paying off the full loan, just a portion of it. North says this might feel like a win, but warns consumers to consider the total costs of buying a R500 000 car on a six-year loan (assuming no deposit and an interest rate of 10.5%): ALSO READ: Don't get caught! Look out for these balloon payment traps when buying a car What happens when the final car payment is due? When the balloon payment is due, your options will be to: Pay it off in cash and own the car outright. Refinance the outstanding balloon payment by entering a new loan agreement and face another few years of making monthly payments and interest charges. You will also have to qualify for financing to take this option. Extend the loan term. Some lenders might allow you to stretch out your repayment period further, although this could mean paying even more interest. Again, this is only possible if you are creditworthy. Sell or trade in your car, leaving you without an asset after forking out cash for months. But remember, you must still settle the balloon payment. ALSO READ: Need a new car? These are the payment options available to you Risks of choosing a balloon car payment North also reminds consumers about the risks of balloon payments. 'These numbers and options make the significant risks and costs of balloon payments clear.' He says the monthly benefit is actually very small compared to these future risk you take: Significant financial risk because you will either need to have cash to pay the balloon payment at the end or you will need to finance it. The bigger the balloon payment, the higher the interest you pay over the full term of the loan. After depreciation, your car might not be worth as much as the balloon payment at the end of the loan. You may never own a car outright if you get caught in a loop of refinancing via a balloon payment plan every five or six years. If you want to exit the loan early, you must be prepared for early settlement penalties and the outstanding balloon payment. Even worse, if your car is stolen or written off in an accident, you will be forced into an early settlement and will need to pay a massive shortfall. If you cannot afford the final payment, you could face consequences, such as repossession of the car under the National Credit Act. 'In theory, a balloon payment gives you the option to pay a large cash amount at the end of your finance term and then you can keep the car. But the reality is that most people do not have that kind of cash lying around and end up having to sell the car. 'And if the car's value is less than the outstanding balloon amount, it becomes a very serious problem, one that many people are unfortunately facing.' ALSO READ: Is it still worth buying a car? Are balloon car payments really a good thing? Do balloon payments then ever make sense? North says despite the costs and risks, there are some instances where balloon payments can be a helpful tool in your financial planning: You like to trade your car in for a new model every few years and are confident you can afford the balloon payment when it is due. You can realistically expect your income and savings to increase over the loan term. You want a reliable new car with a warranty, rather than risking potentially higher and unpredictable maintenance costs with an older one. You are paying for the car through a business and can claim tax deductions on depreciation, interest, fuel, maintenance and potentially the balloon payment to help with cash flow. You do not anticipate needing to exit the loan early and are committed to keeping the car for the full loan term. ALSO READ: The best way to finance your car If you do, choose the right kind of balloon payment Should you choose a balloon payment for your car, you will have to choose between guaranteed future value and traditional balloon payments. North says a Guaranteed Future Value (GFV) finance option could be a safer alternative. 'GFV agreements add a layer of financial security by guaranteeing the value of your car at the end of the finance term, regardless of how much it has depreciated. This guaranteed amount functions as your balloon payment (also known as the 'optional final payment') and is agreed upon upfront. 'When the finance term ends, you will have three choices: Make the final payment and keep the car, trade it in for a new car, or give the car back with nothing more to pay, even if its actual market value is lower than the GFV. This offers peace of mind and avoids the burden of being left with a car that is worth less than the lump sum you still owe.' North also warns against using balloon payments to buy a car you cannot actually afford in the long term. 'Rather put down a larger deposit or choose a more affordable car. Remember, a more expensive car will also have higher maintenance and insurance costs. While it can make sense in some circumstances, the downside of a balloon payment is very seldom worth the benefit.'


The South African
8 minutes ago
- The South African
Malema: National Dialogue is a waste of resources
The Economic Freedom Fighters (EFF) leader Julius Malema has denounced the National Dialogue, calling it a waste of state resources. Malema made the remarks on Saturday during the Siyabonga rally in Seshego, Polokwane, Limpopo, where the party celebrated its by-election victory in July. The EFF won the ward 13 by-election with 57% of the vote, while the African National Congress (ANC) secured 39%. Malema accused the government of ignoring community challenges while wasting millions on the National Dialogue. 'It served no purpose. It only protected the egos of certain people, and it wasted money. NGOs and other participants told organisers to postpone because they were not ready, but they went ahead and embarrassed themselves. We don't support this convention, and we don't support the National Dialogue. We already know what our people demand. Government cannot waste R700 million that it does not have,' Malema said. Malema expressed confidence that the EFF will win more votes in Limpopo during the 2026 local government elections. 'We are ready to win wards in Bela Bela and across Limpopo. We want the EFF present in every township, municipality, and rural area, and we aim to take over government in contested wards,' Malema said. Malema also offered condolences to the widows and children of the Marikana massacre victims on the 13th anniversary of the tragedy at the Lonmin platinum mine in Rustenburg, North West. Police shot and killed 34 miners during a strike for higher wages. 'We send our condolences to the widows of Marikana and the children who lost their fathers. Marikana shaped the EFF into what it is today. The EFF and Marikana will always remain linked. The pain of Marikana remains our pain, because to this day no one has been held accountable,' Malema said. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.


The South African
38 minutes ago
- The South African
'When Khamzat was training, he was busy playing politics': Fans react to Dricus' defeat
Khamzat Chimaev obliterates Dricus du Plessis to be crowwned the new UFC middleweight in Chicago on Saturday night. The Russian fighter dominated the match, scoring frequent take-downs and gave the champion no room to manoeuvre. Ultimately Khamzat won the contest after all three judges scored 50-44 in favour of the challenger. Following the defeat to Khamzat, South African UFC fans took to social to react to Dricus's defeat. Some felt the South African put up a brave fight, while others celebrated his loss following his support for US President Donald Trump. Du Plessis congratulated the Russian fighter, admitting that he was beaten fair and squad. 'Big ups to Khamzat, he deserves this 100%. He beat me fair and square… I'll be back, and I'm coming to get my belt back. But for now it's his, and he deserves it.' Sports, Arts and Culture minister Gayton Mckenzie applauded the Pretoria fighter. 'Dricus du Plessis you made us proud as one of the great champions and we know you will be back. You faced a tough wrestler today but you will come back stronger. It was hard to watch but you never gave up, almost had him & you'll always be a legend. Chin up,' the sports minister wrote on X. @HenryCejudo wrote: 'Dricus showed heart but Khamzat Chimaev is on another level right now. He may very well be champion for years to come.' @Zinc1423300 wrote: 'A Trump supporter and part of the genocide grift machine—I'm relieved he lost. May he face a few more humblings on his way to well-deserved obscurity.' @kokififty5 wrote: 'He can go into politics now seems to have a lot to say on that.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 0211. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.