Western Cape exports to the United States of America (USA) fell by 16.2% in 2025, representing about R2.8 billion in lost export value, as Exporters Western Cape (EWC) calls for urgent intervention to protect the trading relationship.
Exports from the province to the US dropped from approximately R17.31 billion in 2024 to R14.51 billion last year, with recent provincial reporting showing that the USA fell from the Western Cape’s second-largest to fourth-largest export market.
Growing uncertainty
EWC chair Terry Gale said the deterioration in relations between South Africa and the US was creating further uncertainty for exporters who had spent years developing the market.
“This standoff carries an economic cost. While the diplomatic confrontation continues, exporters face uncertainty over a market they have spent years developing. Government must give this relationship the urgent attention it deserves. The livelihoods that depend on it cannot be an afterthought,” said Gale.
Relations have become increasingly strained over disagreements concerning South Africa’s land reform and broad-based black economic empowerment policies.
Washington’s announcement of targeted visa restrictions in September added to the confrontation, with Pretoria rejecting the US characterisation of its domestic policies.
Gale said the escalating public exchanges between International Relations and Cooperation Minister Ronald Lamola and USA Ambassador Brent Bozell III were deepening uncertainty at a time when businesses needed a clear path forward.
“These figures should serve as a warning. Exporters spend years building a foothold in the US market. Continued uncertainty puts that work at risk and makes it harder to retain customers. Once a buyer moves to another supplier, winning that business back is no simple matter,” said Gale.
Calls for action
He said both governments needed to move beyond public confrontation and pursue negotiations that would protect the trading relationship.
“Neither country has to agree on every policy to recognise the value of doing business with the other. But allowing disagreements to deepen without a workable resolution puts commercial relationships in jeopardy. We need direct engagement at the highest level, backed by a clear commitment to resolving the outstanding issues.”
Gale said entering new markets remained essential, but should not become an excuse for accepting the erosion of established trade.
“Diversification takes time. Exporters cannot simply replace the US market overnight. South Africa needs to defend the business it already has while pursuing new opportunities. Further deterioration must not be treated as inevitable.”
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