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2h ago

U.S. Imposes 30% Tariff on South African Sugar as Industry Warns of Job Losses

Loss of a small but high-priced U.S. market threatens growers already squeezed by cheap imports plus weak global prices.

A worker harvests sugarcane at Nkosinathi Msweli's farm in KwaDukuza, a rural region on South Africa's eastern coast, August 26, 2025. Msweli says he will cut about 20 workers this season due to cheap imports and U.S. tariffs creating a "double whammy" for his operation. REUTERS/Sisipho Skweyiya
A worker harvests sugarcane at Nkosinathi Msweli's farm in KwaDukuza, a rural region on South Africa's eastern coast, August 26, 2025. Msweli says he will cut about 20 workers this season due to cheap imports and U.S. tariffs creating a "double whammy" for his operation. REUTERS/Sisipho Skweyiya
A worker stands on harvested sugarcane at Nkosinathi Msweli's farm in KwaDukuza, a rural region on South Africa's eastern coast, August 26, 2025. Msweli says he will cut about 20 workers this season due to cheap imports and U.S. tariffs creating a "double whammy" for his operation. REUTERS/Sisipho Skweyiya
A worker inspects harvested sugarcane at Nkosinathi Msweli's farm in KwaDukuza, a rural region on South Africa's eastern coast, August 26, 2025. Msweli says he will cut about 20 workers this season due to cheap imports and U.S. tariffs creating a "double whammy" for his operation. REUTERS/Sisipho Skweyiya

Overview

  • President Donald Trump announced a 30% tariff on South African sugar imports, curbing access to a premium U.S. outlet.
  • South Africa previously shipped about 24,000 metric tons duty-free to the United States under AGOA, roughly 5% of exports at higher prices.
  • Producers have begun cutting costs, with smallholder Nkosinathi Msweli saying he will lay off about 20 workers this season.
  • The sugar industry is worth about 25 billion rand and supports over 300,000 jobs, intensifying concerns for rural livelihoods.
  • Industry leaders are urging the government to seek a deal with Washington for relief, though any outcome is expected to come too late for this season.