Business Report Economy

Citrus industry welcomes US tariff exemption on South African orange exports

AGRI EXPORTS

Yogashen Pillay|Published

Citrus Growers Associations of Southern Africa (CGA) have welcomed an exemption of US tariffs on citrus fruits exports, more especially oranges.

Image: Doctor Ngcobo / Independent Newspapers

The Citrus Growers’ Association of Southern Africa (CGA) has welcomed the United States’ decision to exempt South African citrus, particularly oranges, from import tariffs, saying the move restores competitiveness and opens the way for growth in the 2026 season.

South Africa exported 4.3 million 15kg cartons of oranges to the US in the past season.

While the 2025 season has already concluded, the CGA on Monday said the exemption will significantly benefit exports from April 2026 onwards.

The CGA said the exemption once again makes South African oranges competitive in the US market, a market that holds opportunities for increased exports and local job creation.

The 30% tariff on South African citrus imports only came into effect in August 2025, near the end of the export window, limiting its impact as growers accelerated shipments ahead of the deadline.

Dr Boitshoko Ntshabele, CEO of the CGA, said South Africa has long been a reliable supplier to the US during America’s off-season.

“In their summer, when their own growers are out of season, we supply them with quality citrus. This keeps consumers in the category, ensuring stability and access to affordable imported fruit,” she said.

Gerrit van der Merwe, CGA chairperson and a grower from Citrusdal in the Western Cape, said consistent supply is vital for the American citrus industry and benefits consumers directly.

Van der Merwe said that this announcement offers much-needed relief to farming communities.

“We have been deeply concerned about the future of our valley for many months. This announcement takes some pressure off our community. There will be some big smiles on the farm come Monday morning. We have been deeply concerned about the future of our valley for many months,” said Van der Merwe.

However, the tariff exemption does not extend to mandarins (soft citrus).

Ntshabele urged the US to reconsider, warning that applying tariffs selectively risks distorting the market.

“Our mandarins are popular in the US. The US should consider extending the current exemption to include mandarins and other citrus varieties because they share similar market dynamics and supply chain vulnerabilities. Applying tariffs to mandarins risks creating price spikes, supply shortages, and inflationary pressures,” she said.

Ntshabele added that ongoing trade negotiations between South Africa and the US should recognise the value of all citrus categories to American consumers.

Wandile Sihlobo, chief economist at Agbiz, said discussions about possible tariff adjustments on a broader range of food products are encouraging.

The US accounts for around 4% of South Africa’s R233bn agricultural, food and beverage exports, mainly citrus, macadamia nuts, wine, grapes and ostrich products.

Sihlobo added that therefore, any downward adjustments to import tariffs on these products, especially if they were to apply to all suppliers, would be incredibly beneficial.

“South Africa’s agricultural exports have been superb so far in 2025. The large volumes of production for various products, combined with improvements at the ports, have led to encouraging export activity,” Sihlobo said.

Dawie Maree, head of information and marketing at FNB Agriculture, said the exemption is good news, but noted that the exclusion of soft citrus remains a concern.

“However, it must be noted that it is not applicable to all citrus varieties. Soft citrus (mandarin types) are still excluded from the exemption,” Maree said.

“It must also be noted that our citrus season is counter-cyclical to the US production season. Our exporters therefore do not compete with US citrus in the same production window. The same can be said for other fruit and agricultural products.”

TLU SA general manager, Bennie van Zyl, also welcomed the tariff relief.

“It will have a positive impact on certain farmers and our citrus growers.”

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