Western Cape – South African exporters lost approximately R2.8 billion in export value in 2025 as deteriorating trade relations with the United States and additional tariffs put businesses and thousands of jobs at risk.
According to BusinessTech, the Western Cape’s exports to the US declined amid tariffs imposed by US President Donald Trump, with manufacturers among those hardest hit.
Terry Gale, chairman of Exporters Western Cape, said the province had experienced a “massive fall-off in trade” with the US, previously one of its biggest and most profitable trading partners. He warned that some factories had already closed their export operations, including facilities in Atlantis that employed between 700 and 1,000 people.
“We cannot afford, as you are well aware, to lose any jobs, and we have to get as much trade going as possible,” Gale said.
Reporting by FreshPlaza corroborates the scale of the trade setback. It reported that Western Cape exports to the US fell from approximately R17.31 billion in 2024 to R14.51 billion in 2025, a decline of 16.2%. The US consequently dropped from the province’s second-largest export market to fourth place.
The African Growth and Opportunity Act (AGOA), which provides eligible sub-Saharan African countries with preferential access to the US market, is another concern. Gale warned that losing these benefits would further weaken South African exporters’ competitiveness and threaten established business relationships and employment.
Although exporters are exploring alternative markets, Gale cautioned that replacing the American market would not happen overnight, as businesses have spent years developing customers and supply chains.
The developments highlight the economic risks posed by escalating trade tensions, particularly for manufacturers and exporters already facing high shipping costs and uncertainty over future access to the US market.
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Compiled by Betha Madhomu
