Tariffs imposed by the United States on South African agricultural products are pushing up the price of South African wine in the world’s largest wine market. The higher costs are eroding competitiveness and contributing to declining export volumes, according to the United Nations Conference on Trade and Development’s February global trade update.
South African wine is now about 17% more expensive in the U.S. compared with 2024 price levels relative to competing imports, Bloomberg reported. Producers of wine and fruit have been affected by American duties of up to 30% on certain agricultural goods, a policy shift that has weighed on shipments to the U.S.
UNCTAD said the tariffs played a role in an 11% drop in imports during the third quarter, followed by a sharper 39% decline in the final three months of the year. The organization noted that the tariff regime is reshaping trade dynamics by “redistributing competitiveness in complex and uneven ways,” with varying effects depending on sector structure, export mix, and market access conditions.
The agency advised countries to monitor tariff exposure closely, diversify export destinations when access becomes restricted, and capitalize on markets where preferential trade margins offer advantages. While exports to the U.S. weakened, South Africa’s broader agricultural sector closed 2025 on a strong footing, with overseas sales reaching a record $15.1 billion, Business Insider Africa reported.
Data showed that the Americas, including the United States, accounted for only 4% of South Africa’s agricultural exports during the period, underscoring a shift toward regional partners and emerging markets. The trend reflects a broader realignment of South African agricultural trade flows, as exporters adjust strategies to reduce reliance on traditional Western markets amid evolving tariff pressures.
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