06-05-2025
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
