Table Grape Industry Voices Concern Over 30% USA Tariff
The USA is an important and growing market for South African table grapes, built on over two decades of reliable counter-seasonal supply. However, a 30% tariff will make South African table grapes uncompetitive in the USA market, which could be further exacerbated should Southern Hemisphere competitors like Peru and Chile face a lower tariff.
The 30% tariff could undermine the industry’s progress in growing exports to the USA market. As part of SATI’s market diversification strategy, increasing volumes to the USA has been a key focus. An uncompetitive tariff would pose a significant barrier, possibly resulting in a missed opportunity for the industry.
Export volumes from South Africa to the USA account for about 3% of total exports but have grown rapidly over the past five seasons at a compound annual growth rate of 20% from the 2020/21 season to the 2024/25 season. During the 2024/25 season, South Africa exported about 2.2 million 4.5kg cartons (about 9,900 tonnes) of table grapes to the USA at a value of about R360 million or $20 million.
SATI is of the view that there is room for further growth if South Africa can compete on a fair and equal footing with other exporting countries. At a 30% tariff, the American consumer would pay almost double the average price for grapes. In real terms, this equates to about $44 per 8.2 kg carton, which is an unreasonable ask.
“We are disappointed but will work with the government to improve the South Africa trade offer to the USA and hopefully be back to better trade terms. This is an evolving matter,” said Mecia Petersen, CEO of SATI.
High tariffs pose a threat to the industry’s competitiveness and the livelihoods of those who depend on it. The table grape industry is a vital contributor to South Africa’s economy, providing employment and contributing to growth. The industry contributed R15 billion ($839 million) to the economy in 2024 in terms of the gross value of production. Table grape production provides close to 105,000 employment opportunities to the value of R3,83 billion ($214 million) per annum; some of these jobs could be placed at risk if the 30% tariff is implemented by the USA.
“We urge the South African government to engage in constructive negotiations with the USA government to find a mutually beneficial solution. SATI remains committed to working alongside government and industry stakeholders to safeguard the resilience and competitiveness of South Africa’s fruit exports,” said Petersen.
Ends
Issued by the South African Table Grape Industry (SATI)
Media Enquiries:
Ms. Denene Erasmus
Market Development & Communications Manager
+2784 548 4606
About SATI
SATI is the unified South African Table Grape Industry Association. All table grape producers are required to register with SATI, which is mandated by law as the industry’s official levy administrator. The levy is required to fund and facilitate market access and development, research and technology, information provision, transformation, and training. SATI is dedicated to operating a partnership that strives to maintain South Africa’s position as the preferred country of origin for retailers around the world. Contact: info@satgi.co.za