Amid mounting trade tension between the US and its import-export partners, industry stakeholders are beginning to identify potential supply-chain recalibration options while markets adjust to the ongoing economic fallout from President Donald Trump’s tariff implementations.
One of these stakeholders is Conrad Fick, marketing director of Tru-Cape, the custodial body representing South Africa apple and pear growers.
He told Afrikaans daily newspaper, Die Burger, that the announcement this past Wednesday in Washington of “reciprocal tariffs” against a host of countries, including South Africa (30%), could actually favour local producers if Canada decided to find alternative suppliers of pome fruit.
However, although Trump’s April 2 announcement is still reverberating through global markets, it’s early days for Canada to stop importing apples and pears from the US.
In February, Trump imposed a 25% tariff on imports from Canada and Mexico, citing national security concerns related to illegal fentanyl imports and migrant entry.
In response, Canada announced retaliatory tariffs on US goods, including a 25% surtax on products such as tomatoes, nuts, seeds, citrus, and stone fruits.
While pome fruit was not explicitly mentioned, the escalating trade tensions could potentially affect a broader range of agricultural imports, Fruitnet reported.
These tariffs are expected to increase the cost of affected fruits for Canadian consumers and may disrupt supply chains. The agricultural sectors in both countries could face challenges, with US exporters potentially losing market share in Canada and Canadian importers seeking alternative sources or dealing with higher prices.
It's important to note that the situation is evolving.
On the same day that Trump announced the new tariffs, the US Senate voted to reject his national emergency declaration used to justify the tariffs on Canadian goods.
But this move is largely symbolic, as the resolution faces obstacles in the House of Representatives and a likely presidential veto, it indicates significant political opposition to the tariffs within the US.
Nevertheless, should anti-US sentiment in Canada continue to deteriorate, a new market for South African apples and pears could very well open up, Fick said.
He added that, since our apple and pear export volumes to the US were relatively low compared with those of citrus, the pome growers' industry is unlikely to feel the impact of the potential loss of duty-free fruit under the African Growth and Opportunity Act, which now appears likely to be scrapped.
