What Trump’s new tariffs could mean for South African wine exports

Source: Vinotecarium via Pixabay

On 2 April 2025, former US President Donald Trump announced a sweeping new tariff regime that will apply across nearly all imported goods entering the United States. Described by Trump as a “declaration of economic independence,” the policy introduces a blanket 10% tariff on all imports, along with sharply increased reciprocal tariffs on countries identified as contributing to America’s trade deficit.

Taxation & Regulation

Trump's trade war: US slaps 30% tariff on South African imports

Katja Hamilton  2 days

Under this plan, tariffs of up to 34% will be imposed on goods from China, 24% on those from Japan, and 20% on imports from the European Union. In a significant move for the South African wine industry, our exports to the US will now face a 30% tariff, one of the highest increases outside of China.

These tariffs take effect in early April and are intended, according to the US government, to boost domestic manufacturing and reduce trade deficits. However, the real-world implications for South African wine exporters could be complex and challenging.

Pressure on pricing and positioning

While the United States is South Africa’s fourth-largest wine export market, after the United Kingdom, other African nations combined, and the Netherlands, it remains an important destination for bottled wines, particularly varietals like Sauvignon Blanc. In 2023, local producers saw a 4% increase in export value to the US, a welcome boost after years of economic headwinds. That momentum now faces a serious hurdle.

With the 30% tariff in place, South African wines will be forced into new pricing tiers that may diminish their competitiveness. Domestic US wines, unaffected by the tariff, will have a clear price advantage at the point of sale.

According to respected industry veteran Zakkie Bester, founder of BESTER Family Wines with more than 30 years of experience in cooperative winemaking in South Africa, this shift is already being felt. “Everyone is understandably uneasy,” says Bester.

“This move will have a significant impact on the pricing of all wines entering the US market. For South African producers, it means our wines will suddenly need to shift into new pricing brackets, ones where domestic US wines will hold a clear competitive advantage. Every time a bottle of South African wine hits the shelf in the US, it will now be carrying a price disadvantage compared to a local alternative.”

This change doesn’t just affect direct exports. With the US market becoming less accessible to many foreign wine producers, including South Africa, there’s a likelihood that countries previously focused on the American market will look elsewhere, including Africa. This could heighten competition in South Africa’s traditional export destinations and crowd the field.

The official South African response

In a statement released by the Presidency, the South African government expressed concern over the unilateral nature of the tariff hikes: “While South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity.”

The statement also emphasised the need to revisit trade agreements between the two countries: “The tariffs affirm the urgency of negotiating a new bilateral and mutually beneficial trade agreement with the US as an essential step toward securing long-term trade certainty.”

Navigating an uncertain road ahead

For South African wine exporters, these changes underscore the importance of agility in global trade. While the US has never been our largest volume market, it has offered significant opportunities for premium placement and brand building. The new tariffs threaten to erode that progress—at least in the short term.

At the same time, this may be a moment to refocus on emerging markets, reinforce relationships within Africa and Europe, and continue advocating for trade frameworks that support long-term growth. While the tone from Washington is combative, South African producers can still take a proactive, measured approach to mitigate the potential fallout.

For further reading on how global wine producers are being affected by the US tariffs, visit Wine-Searcher and The Drinks Business.