Tariffs on South African agricultural products imposed by the United States are driving up the cost of South African wine in the world’s largest market, reducing competitiveness and weighing on export volumes.
According to the United Nations Conference on Trade and Development (UNCTAD) February global trade update.
South African wine is now roughly 17% more expensive in the US compared with 2024 prices, relative to other imports, Bloomberg reported.
Producers of South African wine and fruit are feeling the pinch from American duties of up to 30% on certain agricultural goods. The tariffs contributed to an 11% decline in imports during the third quarter and a 39% drop in the final three months of the year, UNCTAD reported.
The organisation noted that the tariff regime affects South Africa’s competitive position in the US by “redistributing competitiveness in complex and uneven ways,” with impacts varying by sector, country, and export structure.
Shifting competitiveness
“Countries need to monitor their relative tariff positions closely, diversify export markets when access tightens, and seize opportunities where preferential margins improve,” UNCTAD advised.
Meanwhile, Business Insider Africa reported that South Africa’s agricultural sector closed 2025 on a historic high, with exports reaching a record $15.1 billion, even as shipments to the United States fell sharply in the second half of the year.
The data reflect a broader realignment of South Africa’s agricultural trade toward regional and emerging markets, reducing dependence on traditional Western partners.
