The Western Cape's export industry is sounding the alarm over the escalating diplomatic and trade tensions between South Africa and the United States. According to Exporters Western Cape (EWC), exports from the province to the US have declined by R2.8bn in a single year, from R17.31bn in 2024 to R14.51bn in 2025. This represents a 16.2% drop in export value. The decline has raised concerns about the impact on the livelihoods of those dependent on this trade.
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. In a memo seen by TimesLIVE, EWC chair Terry Gale expressed concern over the uncertainty created by the ongoing diplomatic confrontation. He emphasized that the government must give this relationship urgent attention, as the livelihoods that depend on this trade cannot be an afterthought.
The tensions between the two countries 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, including imposing reciprocal tariffs and granting refuge to white Afrikaner South Africans on the pretext of them being victims of a debunked "white genocide". These actions have contributed to the uncertainty and tension in the trade relationship.
According to Gale, the recent decline in exports to the US has resulted in the country dropping from the Western Cape's second-largest to fourth-largest export market. He 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, Gale said.
The EWC chair emphasized that neither country needs to agree on every policy to recognize the value of doing business with the other. Allowing disagreements to deepen without a workable resolution puts commercial relationships in jeopardy. Gale called for direct engagement at the highest level, backed by a clear commitment to resolving the outstanding issues.
While entering new markets remains essential, Gale stressed that it should not excuse the erosion of established trade. He urged the government to defend existing business while pursuing new opportunities. Further deterioration in the trade relationship must not be treated as inevitable, Gale said. The government must take urgent action to address the situation.
The EWC has reiterated the need for a workable resolution to the trade tensions between South Africa and the US. Gale emphasized that diversification takes time and exporters cannot simply replace the US market overnight. The South African government must prioritize defending its existing business with the US while pursuing new opportunities.
Key points
- Western Cape exporters have lost R2.8bn in exports to the US in a single year.
- The US has dropped from the Western Cape's second-largest to fourth-largest export market.
- The EWC is urging the government to intervene at the highest level to address the trade tensions.
