Exporters in the Western Cape have raised concerns over the escalating trade tensions between South Africa and the United States, citing a significant decline in exports to the US market. According to Exporters Western Cape (EWC) chair Terry Gale, exports from the province to the US fell by R2.8bn in a single year, from R17.31bn in 2024 to R14.51bn in 2025. This represents a 16.2% decline in export value. The decline has been attributed to the ongoing diplomatic spat between the two countries.

The trade tensions between South Africa and the US have been escalating since US President Donald Trump's return to the White House in 2025. The US government has taken an antagonistic approach to South Africa, with the EWC citing a memo that highlights the back-and-forth between International Relations and Co-operation Minister Ronald Lamola and US Ambassador to SA Brent Bozell III. This confrontation has created uncertainty for exporters, who have spent years developing the US market.

The EWC has urged the South African government to intervene at the highest level to address the slide in bilateral relations between Washington and Pretoria. According to Gale, the government must give this relationship urgent attention, as the livelihoods that depend on this trade cannot be an afterthought. The EWC has emphasized that neither country needs to agree on every policy to recognize the value of doing business with the other.

Recent provincial reporting shows that the US has dropped from the Western Cape's second-largest to fourth-largest export market. Gale has warned that continued uncertainty puts the work of exporters at risk, making it harder to retain customers. Once a buyer moves to another supplier, winning that business back is no simple matter, he said. The EWC has called for direct engagement at the highest level, backed by a clear commitment to resolving outstanding issues.

The Trump administration has pressed on with policies against South Africa, including reciprocal tariffs and taking white Afrikaner South Africans into the US as refugees on the pretense of them being victims of a long-debunked "white genocide". These actions have contributed to the erosion of trust between the two countries, with the EWC emphasizing that diversification of export markets is essential but should not excuse the erosion of established trade.

The EWC has stressed that South Africa needs to defend its existing business while pursuing new opportunities. Further deterioration of the trade relationship must not be treated as inevitable, Gale said. Entering new markets takes time, and exporters cannot simply replace the US market overnight. The EWC has reiterated the need for a workable resolution to the trade tensions to protect the trading relationship between South Africa and the US.

The decline in exports to the US has significant implications for the Western Cape economy. The EWC has emphasized that the government must take urgent action to address the trade tensions and prevent further decline in exports. The organization's concerns have been echoed by various stakeholders, who have called for a swift resolution to the diplomatic spat between South Africa and the US.

Key points

  • - Exports from Western Cape to US fell by R2.8bn in 2025 - US dropped from Western Cape's second-largest to fourth-largest export market - EWC urges government intervention at highest level to address trade tensions

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.