South African fruit and wine exports will benefit from US-China trade war

China's 15% tax on US wine, fruit and nut imports could increase South African agricultural exports to China. But analysts believe the disadvantages far outweigh the benefits for South Africa. South African wine, fruit and nut producers can expect increased demand from China in the next few months after that country implemented a 15% tariff on US imports. But the disadvantages of a trade war between the two superpowers far outweigh the benefits for South Africa.

This week, China introduced import taxes on 128 US-made goods, predominantly agricultural products, days after the US introduced a heavy import tax on Chinese steel and aluminium exports. Countries such as Australia successfully negotiated an exemption from US tariffs, but negotiations between the US and South Africa have been inconclusive.

The Chinese introduced a 15% tariff on a number of US agricultural goods that South Africa also produces - including citrus, apples, pears, mango, cashews, almonds, strawberries as well as a number of dried fruit products. South Africa's agriculture exports to the Chinese market can increase sharply due to the new tariffs, says Denan Kuni, Wesgro's head of international trade.

"But the potential tariff increases between the USA and China are likely to have negative repercussions on global trade," Kuni told Business Insider South Africa.

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