South Africa’s Citrus Crisis: Trump’s Tariffs Threaten 35,000 Jobs

South Africa’s citrus industry is staring down a crisis that could wipe out 35,000 jobs and cripple a vital export economy. With the U.S. set to impose a 31% tariff on South African citrus by July 9, the stakes are high — both economically and diplomatically.

The planned tariffs are part of former U.S. President Donald Trump’s “reciprocal trade” strategy, introduced in April 2025. The policy places a 10% baseline tariff on all African imports and a 31% penalty on targeted goods, including citrus, vehicles, steel, and aluminum.

What’s at Risk

South Africa’s citrus sector, valued at over $100 million annually, plays a critical role in rural employment, particularly in regions like Citrusdal in the Western Cape.

The tariffs would add approximately $4.50 per carton, pricing South African fruit out of the U.S. market and giving competitors in South America a major advantage.

“The severity of these tariffs could mean towns like Citrusdal face unemployment or total economic collapse,”
— Gerrit van der Merwe, Chair, Citrus Growers’ Association

Beyond citrus, $2 billion in total exports — including auto parts and metals — could also be disrupted, as U.S. trade preferences under AGOA (African Growth and Opportunity Act) are effectively nullified ahead of their September expiration.

Political Fallout

Tensions between Pretoria and Washington have been simmering for months. In March, South Africa expelled the U.S. ambassador after clashing over foreign policy positions, including its refusal to denounce Russia’s invasion of Ukraine.

The new tariff regime, while publicly framed as economic policy, is widely seen as retaliatory, targeting countries that diverge from U.S. positions.

For South Africa, the economic hit coincides with a broader challenge: protecting sovereignty in trade while securing lifelines for rural industries and smallholder farmers.

SA’s Diplomatic Response

The South African government is urgently pursuing three strategies:

Deadline Extension: A formal request to delay the July 9 tariff implementation, allowing space for bilateral negotiations.

LNG Bargain: Proposing purchases of U.S. liquefied natural gas (LNG) in exchange for exemptions on high-value sectors like autos and metals.

Targeted Citrus Exemptions: Arguing that South African citrus doesn’t directly compete with U.S. production and should be exempted from the penalty.

At the same time, the country is accelerating export diversification, pivoting to Asia, Europe, and intra-African markets through the African Continental Free Trade Area (AfCFTA).

Growers and trade unions are demanding immediate government action, warning that any delay will impact the 2025 peak citrus season, when farmers rely on international buyers to stay afloat.

Outlook: Crunch Time for Citrus

Time is running out. South Africa aims to negotiate the tariffs down to 10% or less, but U.S. demands for broader trade concessions remain firm. If a deal isn’t reached by July 9, the economic fallout could be swift and devastating, especially for the rural communities that keep the citrus industry alive.