A person tasting wine in a cellar surrounded by wooden barrels, highlighting African wine production and heritage.
South Africa’s famed wineries are facing a 30% US tariff that threatens to derail exports to one of their key markets. The levy, which is at least twice the rate imposed on European and South American competitors, puts $500 million in annual wine sales at risk, jeopardizing an industry that employs 270,000 people in a nation grappling with massive unemployment. Many producers rely heavily on US buyers, who are now halting orders or seeking alternatives due to the high tariffs. While some hope to pivot to Europe, Asia, or Africa, industry leaders warn that finding new markets won’t be easy. The South African government has promised support, but with the US accounting for 7.5% of total exports, winemakers fear that the support will not be enough.
FT