South Africa’s vineyards, known for their Pinotage and Chenin Blanc grapes, are bracing for a hit after 30 per cent US tariffs left them at a sharp disadvantage to their international winemaking rivals.
Africa’s largest economy exports more than $500mn a year of wine, a staple of its agricultural sector, and the US was its fourth-largest market last year after the UK, Germany and the Netherlands.
The 30 per cent tariff on South Africa, which went into effect on Thursday, exceeds the 15 per cent levied on France, Italy and Spain, as well as the 10 per cent on Australia, Argentina and Chile.
The tariffs could have an outsize impact on an industry employing 270,000 people in a country where one in three cannot find a job.
“The US is also the biggest consumer market for wine globally, so many South African producers have put a considerable amount of effort into building up relationships there,” said Rico Basson, chief executive of the industry body South Africa Wine.