Expert explains why our wine industry will weather the US tariff storm
South African wine exporters have expressed concerns that the US tariffs could squeeze the industry.
Wine / Pexels: stevepb
702’s John Perlman speaks with Michael Fridjhon, Professor of Wine at UCT Business School
Listen below:
As of August 1, the US imposed a 30% trade tariff on South Africa.
Local wine producers say that the US has been a premium destination for wine exports, and losing that market would put strain on the industry.
Fridjhon says the US is our fifth most important packaged wine market.
Packaged wine refers to wine that has already been bottled in South Africa, and US customers pay a premium for wine that they know was bottled at the source, he continues.
However, he says many wine producers have received assurances from their sources that they will do their best to manage the tariffs.
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“30% on duty is a big hit, but they are not simply going to shut down or tell us that we have to give them a 30% discount to maintain the business.”
- Michael Fridjhon, Professor of Wine at UCT Business School
He adds that we have a growing domestic market that could pick up some of the slack if our exports to the US do drop.
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