Cape Town exports: Navigating US tariffs with new market growth
By Staff Writer
A sharp, pre-deadline surge in fruit exports and an 85% plunge in vehicle sales to the US highlight how the country is adapting under pressure, buoyed by breakthroughs in China and Europe.
CAPE Town’s latest export numbers show that the steep hike in trade tariffs by the US is having a marked impact on the city’s economy, even before they came into effect.
Invest Cape Town’s Economic Performance Indicators for Cape Town (EPIC) second quarter report said exports increased by 9,2% to R36,8 billion, with citrus fruit, along with apples, pears and quinces leading the way. Citrus fruit rose 37,7% to R4,24 billion, and apples, pears and quinces jumped 10,0% to
R3 billion year-on-year for the period.
The report said the rise in fruit exports was most likely due to “frontloading,” which was the ordering of produce ahead of the 30% increase in US tariffs on 1 August.
Frontloading also seemingly boosted engine parts, which rose sharply by 82% to R323 million, becoming the top export to the US.
In contrast, yachts and other pleasure and sport vessels recorded a 31,8% decline to R827-million year-on-year. The report said this was likely due to custom yacht construction not being able to avoid higher tariffs because of the length of time it takes to complete a build.
The US ranked as Cape Town’s third-largest export market in the second quarter of 2025, with exports totalling R2,29 billion, the EPIC report said. But this figure was down by 11,7% quarter-on-quarter and 21,9% year-on-year. It said this was most likely due to the 10% tariff introduced on 5 April 2025, which weighed on overall exports to the US.
Though the imposition of higher US tariffs on South Africa still hangs over the country and the Western Cape, there are signs that the local business sector is adapting to the new paradigm.
Lobbying by the Citrus Growers’ Association of Southern Africa (CGA) has led to a tariff exemption for oranges. “This is fantastic news for our growers in the Western and Northern Cape – the two provinces that are allowed to export to the US,” said CGA CEO Boitshoko Ntshabele.
“The exemption once again makes South African oranges competitive in the US market, a market that holds opportunities for increased exports and local job creation,”
Ntshabele added.
There was further good news with citrus exports, as there was a record-breaking 22% increase to 203,4 million 15 kg cartons in global exports.
This rise followed South Africa’s signing of an agreement with China that opened up its markets to five types of South African stone fruit, namely apricots, peaches, nectarines, plums, and prunes. It is also the first instance where China has negotiated access for multiple stone fruit types from a single country under one deal.
“The opening of the Chinese market could unlock approximately R400 million for us over the next five years, a figure which is projected to double over the next ten years. We are of the view that the inaugural 2025/26 export season can generate approximately R28 million and R54 million in 2026/27,” said Minister of Agriculture, John Steenhuisen.
There was also good news when it came to vehicle exports. Naamsa’s Quarterly Review Of Business Conditions: New Motor Vehicle Manufacturing Industry/Automotive Sector: 3rd Quarter 2025 reported a 15% increase to 115 727 when measured year-on-year.
This is despite US exports dropping 85,7% to 1 002 for the period. Vehicle exports were boosted by a 20,9% rise to 91 951 to Europe and a 77,2% increase to 11 522 for Africa.
