Last call for reduced tariff trade: South Africa Wine races against US deadline
As the cork tightens on South Africa's wine exports to the United States, the industry now has clearer, if sobering, guidance on how looming tariffs will take effect once Trump's 90-day grace period ends this July.
South African wine exporters now have a hard deadline, and little room to manoeuvre, after US Customs and Border Protection confirmed how US President Donald Trump's reciprocal tariff order will apply once the 90-day reprieve evaporates on 9 July 2025.
This is according to a Monday, 5 May update to its members by South Africa Wine, the industry's umbrella body.
'According to our interpretation, goods shipped and in transit before 6.01am South African Standard Time on 9 July 2025 will face only a 10% tariff, while those arriving later will be hit with the full 30% surcharge,' said Christo Conradie, stakeholder engagement, market access and policy manager at South Africa Wines.
This tariff gauntlet flows from Trump's 2 April executive order, which shook up existing trade preferences under the African Growth and Opportunity Act (Agoa).
While Agoa technically remains in force until 30 September 2025, it has now been partially neutered, overruled by the more aggressive reciprocal tariff framework. US Customs also confirmed this to South Africa Wine.
Political uncorking
Behind the scenes, Conradie said that South Africa Wine is working with the Agricultural Business Chamber and key government departments.
'South Africa Wine continues to engage with US and local stakeholders to confirm this officially and to continue seeking a longer-term solution,' he said.
South Africa Wine remains in weekly contact with the Department of Trade, Industry and Competition, the Department of Agriculture, Land Reform and Rural Development, the Department of International Relations and Cooperation, and representative bodies Business Unity South Africa and the National Economic Development and Labour Council to negotiate a solution.
After Trump's tariff order on 4 April 2025, the South African News Government Agency released a statement after Minister of International Relations and Cooperation, Ronald Lamola, spoke during a media briefing on the subject.
Lamola said that plans were afoot to navigate the challenges imposed by the tariffs include securing better trade terms with the US, using the African Continental Free Trade Area (AfCFTA) to strengthen regional trade access across Africa, and focusing on high-value manufacturing to minimise vulnerability to tariffs.
Of particular note in South Africa Wine's communication to stakeholders is the statement that a phone call between President Cyril Ramaphosa and Trump last week initiated 'direct diplomatic engagement', and looks to be encouraging.
Now that the fog has lifted
The dust may have settled on logistics but the race is on to move stock before the deadline, while backroom diplomacy shifts into overdrive.
South Africa Wine has promised to keep stakeholders informed of any developments, as per its communiqué on 5 May. DM
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
an hour ago
- The South African
UPDATE on Smart IDs for naturalised citizens
For the longest time, Smart IDs for naturalised citizens were simply not available. Almost unconstitutionally, anyone who'd become a lawful permanent resident in South Africa was effectively barred from obtaining one. However, one-month ago, on Sunday 11 May 2025, Home Affairs Minister Dr. Leon Schreiber announced Smart IDs for naturalised citizens were finally going ahead. It is understood that more than 1.4-million lawful permanent residents are now eligible for the latest ID. Government has long touted the enhanced security of the Smart ID card. And yet millions were unable to access it, until now. Image: File Frankly, we were appalled that such a situation even existed. In the past we were regularly contacted by readers on our WhatsApp line. Despite having all the same constitutionally enshrined rights, naturalised citizens were being discriminated against for decades. To become a naturalised South African citizen, you must first hold permanent residency for at least five years. However, the good news is that Smart IDs for naturalised citizens are now available to anyone eligible through the e-Home Affairs platform. The application cost is R140. 'This is a major milestone on the digital transformation journey of Home Affairs. It is a victory for social inclusion and national security. These citizens and lawful residents were previously excluded from the Smart ID and restricted to the vulnerable green ID book,' said Dr. Schreiber Dr. Leon Schreiber's reforms at Home Affairs have been impressive in just over one year since taking office. Image: File Technology and IT system issues were the reason for unavailability of Smarts IDs for naturalised citizens prior, reports BusinessTech . Due to the vagaries of the old Home Affairs' paper-based system, only certain residents could access Smart IDs on an invite-only basis. This was because all processing had to be done manually. Worse still, naturalised citizens were only permitted to visit a handful of outdated Home Affairs offices that still supported the issuing of old green ID booklets. Embarrassingly for previous leadership, Smart IDs have been around since 2013. And green ID booklets were purported to be phased out somewhere between 2018 and 2022. And yet, they still remain in use, despite government's own concerns about fraud and identity theft. 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.
IOL News
an hour ago
- IOL News
Global capital flows and the great rotation into emerging markets
A structural reversal in global capital allocation away from US assets now appears to be underway. We expect this to weaken the US dollar and provide significant support to emerging markets, which are increasingly well-positioned to benefit from this rebalancing in global portfolio flows. The world is overexposed to US assets. Since the global financial crisis in 2008, the allocation of US assets in global investment portfolios has increased rapidly, reaching extreme levels. Although this trend has been recognised as unsustainable for some time, a combination of key factors has continued to reinforce it. These include large fiscal deficits in the post-Covid period, persistent weakness in eurozone growth, the dominance of the US technology sector, and a prolonged period of elevated interest rates in the US. These dynamics pushed US equities higher and strengthened the dollar, despite the widening US twin deficits, leading to a deeply negative and expanding net international investment position. Until now, no clear catalyst has emerged to reverse the trend of US dominance. The Trump administration has taken bold steps to recalibrate US trade and foreign policy, marking a potential turning point. Officials argue that a strong dollar and excessive trade openness have eroded US manufacturing and undermined the economic prospects of the country. This policy shift could catch global investors off guard, given the world's heavy exposure to US assets.
IOL News
2 hours ago
- IOL News
The fallout from Trump's Afrikaner project on Ramaphosa's National Dialogue agenda
President Cyril Ramaphosa has defended BEE as an engine of growth. Image: GCIS President Cyril Ramaphosa's upcoming national dialogue aims to tackle critical issues facing the country, including the divisions sparked by US President Donald Trump's controversial offer of resettlement to white Afrikaners, alongside pressing concerns regarding unemployment and poor governance. On Wednesday, Ramaphosa announced the appointment of an 'eminent persons group,' comprising 31 South Africans, who will spearhead the National Dialogue scheduled for August 15. One of the eminent persons, who requested anonymity, said the dialogue can be seen as a response to concerns, aiming to address the country's challenges and promote national building. 'The issue should definitely come up, although everybody has a choice to leave the country. "We are way beyond the colour lines now and should focus on nation building with the people who are in the country, instead of dwelling in the past. 'Sure, it's a bone of contention but we do have bigger problems," she said. However, not all are on board with Ramaphosa's dialogue initiative. The uMkhonto weSizwe Party has rejected the dialogue as an "elitist farce," saying it is a "staged theatre for the political elite". In a statement its spokesperson, Nhlamulo Ndhlela, asked why there were no ordinary South Africans, such as shack dwellers, represented? 'The so-called Eminent Persons Group, handpicked by the very same ruling class responsible for mass unemployment, deepening poverty, collapsing infrastructure and the ongoing betrayal of the Freedom Charter, is a mockery of the suffering endured daily by millions of destitute and despondent South African,' Ndhlela wrote. The EFF has also expressed skepticism, questioning the government's motives and the selection process for the Eminent Persons Group. "The challenges Ramaphosa's National Dialogue seek to address are not a product of triumph of human sacrifice against evil, which require collective national reconstruction, but are a product of man-made destruction and corruption of which he and the party he leads have been at the centre of," the EFF said in a statement. The DA's national spokesperson, Willie Aucamp, welcomed the National Dialogue saying his party would embrace the opportunity. 'I think it's high time that we as a nation get together and discuss collectively what we see as a road forward for this country,' he said. Build One South Africa (BOSA) described the announcement as a positive and necessary step forward for the country at a time of great political uncertainty, public anxiety, and economic malaise. The GOOD Party's general secretary Brett Herron said it was long overdue as the wait had been frustrating.
