US tariffs push SA macadamia farmers to explore Indian market

Crates of macadamia are seen at Gene Likhanya's farm, in the Madimbo valley, outside Makhado in the Limpopo province, near the border with Zimbabwe and South Africa, June 5, 2025. REUTERS/Sisipho Skweyiya

South Africa, one of the world’s leading producers of macadamia nuts, counts the United States as its second-largest buyer after China. But with escalating tariff measures threatening trade flows, producers like Likhanya, whose business employs 78 people and harvested 25 tonnes this year, are bracing for potential disruption. He hopes to triple production within four years, though trade tensions may slow those plans.

Although the "reciprocal" levies announced by Trump on 2 April, set at 31% for South Africa, have been paused to allow for negotiations, Likhanya said he and fellow macadamia nut farmers were already looking for alternative markets.

India emerges as key alternative

"I feel that there's so much more we can do internationally to explore other markets. There are markets we are busy talking to. We're talking to India," Likhanya, 40, told Reuters in an interview at his farm.

"India has 1.5 billion people who are also looking for macadamia. So there's always an alternative plan."

Other South African farmer groups have warned of potential devastation from the US tariffs. Citrus growers, whose annual exports to the US average $100m, have said that tariffs could potentially hit 35,000 jobs in their industry.

Likhanya, a board member at Macadamias South Africa, the main industry body for growers, described the tariff stand-off as a "lose-lose" situation and hopes it can be resolved.

"America imports kernels, which they further process. Those (processing) jobs are threatened. So it's a win-win or lose-lose kind of a situation, which I feel we do not want to get into," he said.