Exports from the Western Cape to the United States fell by 16.2% in 2025, with Exporters Western Cape (EWC) warning that worsening diplomatic relations could put export business and jobs at further risk.
The province’s exports to the US declined from approximately R17.31bn in 2024 to R14.51bn in 2025, a decrease of about R2.8bn. Recent provincial reporting shows the US has dropped from the Western Cape’s second-largest to fourth-largest export market.
EWC chairman Terry Gale said escalating public exchanges between International Relations and Cooperation Minister Ronald Lamola and US Ambassador Brent Bozell III were deepening uncertainty for businesses that had invested years in developing the US 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.
Established trade under pressure
Relations between South Africa and the US 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 tensions, while Pretoria rejected the US characterisation of its domestic policies.
Gale said the decline in export value should serve as a warning to businesses and government.
“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,” he said.
He called on both governments to move beyond public confrontation and pursue negotiations to protect bilateral trade.
“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.”
Market diversification takes time
Gale said expanding into new markets remained important but could not be treated as an immediate replacement for established export relationships.
“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,” he said.
