South Africa-United States citrus trade relations could sweeten when Presidents Ramaphosa and Trump meet May 21, 2025.
The meeting comes adrift simmering tensions that range from 30% tariffs (currently suspended) and diplomatic tiffs.
In March, Washington D.C. dismissed SA’s ambassador following his anti-”American First” comments. Then in early May, Trump welcomed 49 Afrikaners who “fled” South Africa on white land repossession claims.
But it is citrus that sits most expectantly, despite the American market representing only 5-6% of Pretoria’s total exports.
The significance owes to the fact that the Western Cape province depends on the American market for 20% of its citrus exports, per DHL.
On April 2, 2025, the sector absorbed 30% duty by the U.S., later relegated to a 90-day grace period.
Extra-U.S. Opportunities
With the industry predicting stable 2025 exports, it is branching out to Europe, albeit treading carefully in Spain’s territory.
The sector is also expanding into Asia, especially the Middle East, the Far-East and the subcontinent.
Even though India currently imposes 30% import tariffs, the market is promising due to its high demand for SA’s citrus.
Fast-tracking Logistics
Shipping logistic costs could also reduce after Transnet upgraded its port with 3 billion Rand ($1.27 billion).
Transnet had said back in April 2024 that it could handle all 15% extra citrus volumes in harvest that year.
Where Transnet may be unable to meet cargo capacity, the Red Sea Gateway Terminal International company from Saudi Arabia could set in. The entity is eyeing the Durban port for a concession of 25 years.
If the lease happens, the company might improve citrus exports for it intends to build a fruit berth.
Port delays, especially in the Cape Town hub, have notably in the past hampered timely deliveries.
For now, all eyes remain on the high level Trump-Ramaphosa one-on-one that promises much for Western Cape. Whatever the outcome of the talks, it is apparent that the citrus sector remains strong without duty. To learn more on the South Africa-United States tariff situation, peruse the statistics section, next.
South Africa and the United States Citrus Tariff Statistics
South Africa exports 5 to 6% of its citrus shipments to the United States, worth 1.8 billion Rand ($99.8 million), as of 2024. This portion creates 35,000 jobs in Western Cape, a province that depends on the U.S.’ market for 20% of its citrus shipments. However, with a 30% tariff announcement in April 2025, the sector could turn uncompetitive.
How could U.S.’ tariffs affect South Africa’s citrus?
The 30% tariff will only apply to South Africa while other competitors, like Chile, will have only 10%. This makes the duty capable to reduce South Africa’s international citrus trade competitiveness.
Does the citrus tariff affect the U.S.?
According to IT-Online, since Chile provides 70% of orange imports into the U.S., hitting South Africa with tariffs leaves a supply gap. This is because no other Southern Hemisphere’s market will readily fill the SA gap. For this reason, consumers in the U.S. may see a spike of prices until Northern Hemisphere’s supplies come into season.