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The South African
29-07-2025
- Business
- The South African
Citrus growers urge Ramaphosa to intervene over looming US tariff
The Citrus Growers' Association (CGA) urged President Ramaphosa to intervene as the US prepares to impose a 30% tariff on South African citrus exports. The association warned that this tariff would severely harm rural citrus growers and local economies. Boitshoko Ntshabele, CEO of the CGA, expressed deep concern about the looming deadline this Friday. He explained that growers in the Western and Northern Cape, who annually export about 7 million cartons to the US, face a critical week. The CGA urged Ramaphosa to urgently secure an extension of the current 10% US tariff beyond 1 August. Ntshabele said this extension would allow negotiations toward a trade agreement that benefits both countries. He stressed the importance of either a general extension or, if that is not possible, a specific extension for seasonal fresh produce. 'Seasonal fresh produce is perishable and cannot be stored for extended periods like other trade products,' he added. The association noted that growers had just passed the midpoint of the export season and had prepared hundreds of thousands of cartons for shipment to the US. Implementing the 30% tariff on 1 August would leave most of this fruit unsold. IOL reported that South Africa is scrambling to secure a trade deal with the US. The Department of Trade and Industry confirmed that it has yet to sign 'any substantive agreement.' Ministerial spokesperson Kaamil Alli explained that the signed document only serves as a precedent condition. Marking a step before finalising ongoing negotiations. Gerrit van der Merwe, CGA Chairman, warned that the tariffs threaten the economic backbone of Citrusdal and the Cederberg. He stated that the tariffs would impact jobs, local businesses, and essential social services. Van der Merwe added that local growers have indicated a 30% tariff could not only halt future growth but might also lead to the destruction of 500 to 1,000 hectares of citrus orchards, which would become unprofitable. 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
29-07-2025
- Business
- IOL News
Citrus Growers call on Ramaphosa to intervene against looming 30% US tariff
With a 30% US tariff on South African exports looming, the Citrus Growers' Association has urged President Ramaphosa to intervene, Image: Doctor Ngcobo / Independent Newspapers With a 30% US tariff on South African exports looming, the Citrus Growers' Association has urged President Ramaphosa to intervene, warning of severe consequences for rural citrus growers and local economies. In a statement issued to the media on Monday, the association expressed deep concern over the potential impact on jobs. "This week, with the tariff deadline on Friday, is one of great anxiety for the citrus growers in the Western and Northern Cape. These two provinces annually export about 7 million cartons to the US," Boitshoko Ntshabele, CEO of the CGA said. The association has also appealed to Ramaphosa to "urgently facilitate an extension of the current 10% US tariff beyond 1 August, which would allow for negotiations toward a mutually beneficial trade agreement". "If a general extension of the deadline is not possible, an urgent request for a specific extension for seasonal fresh produce should be secured. Seasonal fresh produce is perishable and cannot be stored for extended periods, like other trade products. "The midpoint of the 2025 export season has just been passed, which means hundreds of thousands of cartons of citrus are ready in packhouses to be shipped to the US over the next few weeks. The implementation of a 30% tariff on 1 August will mean most of this fruit will be left unsold". Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ IOL previously reported that South Africa is currently scrambling to secure a trade deal with the US government, with the Department of Trade and Industry confirming that it has not managed to sign "any substantive agreement yet". "We have not signed any substantive agreement yet. The document signed was a precedent condition document," Ministerial spokesperson Kaamil Alli said. "This is a precursor to the finalizing of the negotiations, which are ongoing". CGA Chairman Gerrit van der Merwe warned also that the proposed tariffs threaten the economic backbone of Citrusdal and the Cederberg, with ripple effects on jobs, local businesses, and vital social services. "Local growers have also said that a 30% tariff could not only stifle future growth, but lead to the eventual destruction of between 500 and 1,000 ha that would simply become unprofitable," Van der Merwe continued. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
29-07-2025
- Business
- IOL News
South African citrus industry calls for Ramaphosa's intervention amid looming US tariff hike
The Citrus Growers' Association has appealed to President Cyril Ramaphosa to intervene in critical trade negotiations with the US, as a steep tariff hike threatens the livelihoods of South African citrus growers and rural economies. Image: Independent Newspapers Archives The Citrus Growers' Association of Southern Africa (CGA) has issued an urgent appeal to President Cyril Ramaphosa to intervene in trade negotiations with the United States ahead of the 1 August deadline, when a steep tariff hike on South African citrus is set to take effect. From Friday, US import duties on South African citrus will increase from 10% to 30%, a move the CGA warns will have severe consequences for rural economies in the Northern and Western Cape provinces, which export approximately seven million cartons of citrus annually to the US market. 'This week, with the tariff deadline on Friday, is one of great anxiety for the citrus growers in the Western and Northern Cape,' said CGA CEO, Dr Boitshoko Ntshabele. 'Should we not be able to secure a favourable trade deal, or the concession for fresh produce, local job losses before the next season will be a certainty.' In a letter to the President, the CGA requested that the government urgently secure either a general extension of the current tariff or a specific exemption for seasonal fresh produce, citing the perishable nature of citrus and the economic impact of fruit left unsold mid-season. Dr Ntshabele stressed that South African citrus exports do not compete with American growers, as they supply fruit during the US off-season. 'Citrus, as a source of nutrition, also helps to keep Americans healthy,' he added. CGA Chairperson Gerrit van der Merwe, a grower based in Citrusdal, warned that a 30% tariff would damage the economic backbone of his community. 'Citrus forms the economic heart of the area. Not just farmers and farm workers will feel the impact, local businesses and even the funding of social support programmes will be affected as well. The social fabric of some rural towns in the Western and Northern Cape is being threatened,' said Van der Merwe. He further cautioned that growers may be forced to abandon between 500 and 1,000 hectares of orchards due to unprofitability under the higher tariff regime. The CGA also addressed calls for market diversification, stating that citrus cannot easily be rerouted to alternative markets due to strict phytosanitary and market-specific requirements. The association warned that flooding other markets with diverted citrus could lead to price collapses, further hurting the industry. 'The citrus industry has the potential to create 100,000 additional jobs by 2032 because of new plantings,' the CGA said in its letter. 'But for this to realise, we require the expansion of every market including the US, China, India, the European Union and others.' While acknowledging progress in trade negotiations, the CGA urged the Presidency to intensify direct diplomatic engagement with the US to avoid economic fallout. THE MERCURY
The Sun
09-07-2025
- Automotive
- The Sun
South Africa seeks US trade deal after Trump's 30% citrus tariff
JOHANNESBURG: South Africa will push for a trade agreement with the United States following the announcement of a 30% tariff on its citrus exports by former President Donald Trump. The new duty, set to take effect on August 1, could severely impact the country's agricultural sector, which relies heavily on citrus exports. President Cyril Ramaphosa described the tariff as based on a 'contested interpretation' of trade relations between the two nations. He emphasized ongoing diplomatic efforts to secure a fairer deal. 'South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States,' Ramaphosa stated. South Africa argues that US exports face an average duty of 7.6%, with 77% of American goods entering the country tariff-free. The government has urged local businesses to diversify their markets to reduce dependence on US trade. The US is South Africa's second-largest trading partner after China, with key exports including agricultural products, precious metals, and vehicles. The citrus industry, however, stands to lose the most. Boitshoko Ntshabele, head of the Citrus Growers' Association, warned that the tariff could eliminate 35,000 jobs, particularly in vulnerable rural communities. South Africa ranks as the world's second-largest citrus exporter after Spain. A sudden drop in US demand could lead to oversupply and falling prices, further destabilizing the sector. The tariff adds to existing duties on South African automobiles, steel, and aluminum. A 25% levy on car exports, imposed in April, has already reduced shipments by over 12% year-on-year. Mercedes-Benz, one of the affected automakers, paused production at a local plant for more than a month due to declining US demand. Initially, South African citrus and auto exports enjoyed tariff-free access under the African Growth and Opportunity Act (AGOA). The new measures mark a significant shift in US trade policy, raising concerns over long-term economic impacts. - AFP
eNCA
09-07-2025
- Business
- eNCA
South Africa to seek trade deal after Trump tariffs
JOHANNESBURG - South Africa will pursue a trade deal with the United States, its presidency said on Tuesday, after Donald Trump announced a tariff that threatens to cripple the African nation's vital citrus industry. Trump informed Pretoria its exports to the United States will attract a 30 percent tariff from August 1, in a wave of letters sent out Monday to more than a dozen countries. President Cyril Ramaphosa said the new rate was based on a "contested interpretation" of the two countries' trade balance and that they would continue to negotiate a trade deal. "South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States," Ramaphosa said it a statement. According to South Africa, US exports average a 7.6 percent duty and 77 percent of US goods sold in Africa's most industrialised economy attract zero tariff. "This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States," Ramaphosa said, meanwhile urging South African companies to diversify and reduce reliance on US trade. The US is South Africa's second-largest trading partner after China, exporting agricultural products, precious metals and vehicles. Unless reversed, the new duty risks cutting 35,000 jobs in the local citrus industry alone, the country's Citrus Growers' Association chief Boitshoko Ntshabele told AFP. South Africa is the world's second-largest exporter of citrus fruit after Spain, and citrus is the country's top agricultural export sector. Most of the jobs will be lost in small rural communities that are particularly vulnerable to external shocks, Ntshabele said. "If we start having other markets flooded, obviously, you have oversupply, and then the likelihood of a price collapse," he said. The 30 percent tariff will be separate from those earlier announced on sectors such as cars, steel, and aluminium. The effects of the 25 percent duty on automobiles, in place since April, is already being felt. In June, exports of South African-assembled vehicles dropped by more than 12 percent year-on-year, according to the automotive industry association. The figure included a sharp drop in Mercedes-Benz's C-class model exported to the US. The German carmaker has meanwhile halted production for more than a month at one of its plants in the southeast of the country. The closure was part of a "planned non-production period" due to volume adjustments, Mercedes-Benz South Africa told AFP. "We are continuously assessing the impact of the introduced US-tariffs," it said.
