In response to the 30% tariff recently implemented by the United States on all South African imports, including Rooibos, the South African Rooibos Council (SARC) has initiated a coordinated engagement with the Department of Trade, Industry and Competition (DTIC) and the US Embassy to advocate for the tariff’s reduction or removal.
The SARC is emphasising that Rooibos is a uniquely South African product, grown exclusively in a small region of the Western Cape and not cultivated anywhere else in the world, including the United States. As such, it poses no competitive threat to American agricultural production or domestic manufacturing. In fact, 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 full impact on the Rooibos industry will become clearer over the next few months, with the US currently accounting for around 5% of total exports. Although the US is an important market, the industry’s exposure is somewhat cushioned by a broad and steadily expanding global customer base.
“Our priority is to support Rooibos producers and exporters during this challenging period,” says Dawie de Villiers, Chairperson of the SARC. “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.”