South African rooibos industry seeks tariff relief in the US market

In a statement, the council noted that the majority of Rooibos exports to the US play an important role in supporting American businesses.

“More than 90% of Rooibos exported to the US is shipped in bulk for blending, packaging and marketing by American companies, which supports value addition, stimulates local business activity and creates jobs within the US market,” the SARC said.

While the US accounts for about 5% of total Rooibos exports, the council said it is too early to measure the full effect of the tariff on the sector. The impact is expected to become clearer in the coming months.

The industry remains somewhat shielded from the tariff shock due to the diversification of its export markets. Rooibos has established a steadily growing global customer base, which SARC says cushions the effect of disruptions in any one region.

Dawie de Villiers, chairperson of the SARC, said: “Our priority is to support Rooibos producers and exporters during this challenging period. We are actively engaging with stakeholders and exploring all opportunities to ensure Rooibos remains competitive in the US market, while also strengthening our presence in other international markets.”

THE MERCURY

The South African Rooibos Council (SARC) has entered into talks with the Department of Trade, Industry and Competition (DTIC) and the United States Embassy in an effort to secure tariff relief for Rooibos exports, following the imposition of a 30% tariff by the United States on all South African imports.

The industry body argues that the new tariff unfairly impacts a uniquely South African product that poses no threat to US agriculture or manufacturing.

The council said rooibos is grown exclusively in a small region of the Western Cape and is not cultivated anywhere else in the world.