South African grape and wine exporters are facing increasing uncertainty due to US President Donald Trump’s recent tariff measures, with the table grape and wine industries warning of severe economic consequences.
The table grape sector, which has spent years establishing a foothold in the US market and now commands a 28% share, may no longer find it viable to export if a proposed 31% tariff is imposed, according to SABC News.
Gabriel Viljoen, chair of the Oranje River Producers Association, said the added costs would erase profitability for South African growers.
“It’s not economically viable for us in the chilli urban and above us due to market conditions, and it’s not going to be in there anymore. The market penetration of the five past seasons we’ve had has increased the volume to about 28% of market share, which we send a product to the USA. So if the tariff that President Trump is putting on the table is 31%, it’s not going to be economically viable for us,” said Gabriel.
Meanwhile, Daily Investor reports that the local wine industry is also bracing for a major impact.
Cornelius Coetzee, Verto South Africa’s country director, explained that the US market has been critical for diversifying exports beyond Europe and Asia. As one of the world’s top wine-exporting countries, South Africa is particularly vulnerable to shifting trade policies.
Donald initially announced reciprocal tariffs on goods from 60 countries — including South Africa — but has since paused their implementation for 90 days, retaining a flat 10% duty for now. Despite the temporary reprieve, exporters are preparing for long-term cost pressures and thinner margins.
According to Daily Investor, Cornelius identified several factors adding pressure to the wine industry:
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Foreign exchange volatility, particularly shifts like the 15% rise in the British pound against the dollar;
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Global protectionism, including Canada’s recent 25% tariff on U.S. wines;
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Rising operational costs, especially for imports like barrels and bottling materials;
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Payment inefficiencies, which delay cash flow and hamper distributor relationships.
Domestically, the wine industry also faces regulatory challenges. The South African government has hiked excise duties on wine by 6.75% for 2025/26, pushing the levy on unfortified wine to R5.95/litre and fortified wine to R10.04/litre — moves that could drive more consumers to illicit alcohol and damage legitimate producers.
First published by African Insider
Compiled by Betha Madhomu
Also see: Think Trump’s presidency doesn’t affect you as a South African? That’s where you’re wrong
