Farmers warn that American taxes could endanger 35,000 jobs.
South Africa is the second biggest citrus seller in the world, only after Spain.
A farming group stated Tuesday that taxes declared by US President Donald Trump will harm citrus farms and might put 35,000 jobs at risk.
On April 2, Trump put a 31% tax on US goods coming from South Africa. This was after he announced a basic 10% tax on all imports and higher taxes on many countries.
South Africa, the world’s number two citrus seller after Spain, sends 5% to 6% of its citrus to the US, making over $100 million (R1.95 billion) each year.
The Citrus Growers’ Association of Southern Africa (CGA) said the new tax would add $4.50 (R87.80) to the price of each box, making South Africa’s fruit less attractive to buyers in the US.
CGA chairperson Gerrit van der Merwe said that towns like Citrusdal in the Western Cape, which rely heavily on selling citrus to the US, could be greatly affected.
He said, “Our communities are very worried.”
He also mentioned that 35,000 jobs are directly linked to citrus exports.
Since farmers are now starting to pack citrus for the US market, they have asked the government to quickly talk with the US about lowering or removing taxes on citrus.
The leading economy stated it won’t strike back at the US, its second biggest trade partner after China. Instead, it will try to get special deals and set limits on imports.
That country also believes Trump’s taxes canceled out the good things African nations got from the African Growth and Opportunity Act. This act allows certain countries to send goods to the US without taxes. The 25-year-old trade program ends in September.