- The US has imposed a 31% tariff on South African macadamia nuts, which has hit exporters
- Gene Likhanya plans to triple production and is looking for new markets, mainly in India.
- Citrus exports from South Africa are also at risk, with up to 35,000 jobs on the line.
- The industry sees the trade dispute as a “lose-lose” situation and is calling for an agreement with the US.
Farmers’ perspective on changes in US trade policy
Gene Likhanya, owner of a macadamia farm in South Africa’s Madimbo Valley, has developed his business over two decades. Today he employs 78 workers and achieves an annual harvest of 25 tonnes. Its ambitious goal is to triple production in four years. However, new import tariffs announced by the Donald Trump administration – at 31% for South African products – have threatened the US’ position as the second most important export market after China.
Although the tariffs have been temporarily suspended to allow for negotiations, growers such as Likhanya are already looking for alternative markets. Among others, he points to India, a country with 1.5 billion potential consumers, as a promising destination for South African macadamia nuts.
Wider implications for agriculture and the processing industry
Concerns about tariffs do not only affect macadamia producers. Farmers’ organisations warn that the US trade policy could also negatively affect South Africa’s citrus exports, which are worth around $100 million a year and provide up to 35 000 jobs.
Likhanya, who is a board member of industry organisation Macadamias South Africa, stresses that the possible introduction of tariffs will not only hit farmers in Africa, but also US processors. He describes the situation as “lose-lose” and expresses hope that the conflict can be resolved through negotiations.
Click for an article worth reading: Overview and analysis of the nut market in 2025 [Global Report]