The 30% tariff the United States has applied to South African imports is a real headwind for exporters. It should not be the whole story. Rooibos is a uniquely South African-origin product with deep roots in rural Western Cape communities, a diversified customer base, and a strong sustainability narrative that travels well. The job now is to protect margins in the short term, while leaning into market growth, premium positioning and climate resilience.
On a sun-baked plateau in the Cederberg, farmworkers still harvest rooibos much as their forebears did. The crop underpins about 8,000 livelihoods, many of them in small towns where work is scarce. Total production has expanded over the past decade to roughly 22,600 tonnes in 2023, enough for more than 10 billion cups of tea. A healthy share is enjoyed at home by South Africans. That local base keeps processors busy and stabilises demand when global conditions turn choppy.
Exports are real and diversified. Rooibos reaches more than 50 countries. Japan, Germany, the Netherlands, the United Kingdom and France are consistently strong buyers. The United States is important, but it is not the centre of gravity. It accounts for about five percent of exports, so the tariff stings, but it does not decide the sector’s fate.
There is also a powerful story of innovation that shows how rooibos can move up the value chain. A Cape-based team turned finely ground rooibos into a barista-ready “red espresso”. It pours with a natural crema, it is caffeine-free, and it fits perfectly into café culture. What started as a brave idea is now a menu staple, from red cappuccinos to ready-to-drink formats. The company behind it built the market café by café, partnered early with Woolworths, expanded into mass retail and private label, and now sells in a dozen countries. It employs people at its Paarl base and supports jobs in the tea lands. It pays a premium for quality, backs fair-trade style pricing with farmers, and invests in community upliftment in places like Heuningvlei. This is what origin-led premiumisation looks like in practice, and it is a template the wider industry can scale.
South Africa has advantages that outlast news cycles. Rooibos is a dryland crop that thrives in the fynbos biome. Deep roots help it survive drought. Producers and processors have embraced biodiversity standards and independent certifications. The product’s single-origin character and its recognition in high-value markets protect authenticity and support premium pricing. When you add in the cultural story that every South African kitchen knows, you get a brand that is trusted at home and attractive abroad.
None of this downplays today’s pressure. The US tariff will squeeze margins in a market that blends and packs rooibos domestically. The industry is right to push for relief. At the same time, we can act on a bigger opportunity set that builds value and keeps more of it in South Africa.
What to do now
• Keep negotiating for relief, while planning for a period of higher US duties. Shift the mix toward higher-value extracts, functional blends and ready-to-drink lines that are less price sensitive.
• Lean into Asia. Japan already leads demand, China is opening to rooibos, and e-commerce partnerships can accelerate growth.
• Sell the origin, not only the tea. Tell the story of a single landscape, biodiversity stewardship, and benefit-sharing with indigenous communities. Purpose with proof supports premium pricing.
• Invest in climate adaptation. Back cultivar research, soil and water management, and farmer support to harden yields against drought and heat stress. Resilience is competitiveness.
• Move up the value chain. Help processors convert more volume from bulk leaves to extracts, barista formats and branded products. Use regional trade agreements to build distribution into the continent.
• Strengthen the domestic moat. Innovate in retail with convenience packs, barista formats and red cappuccinos to grow local consumption and protect processor utilisation.
• Back smallholders and rural towns. Affordable finance, logistics smoothing and certification support will keep more value in producing communities and protect livelihoods.
By the numbers
• Production about 22,600 tonnes in 2023, more than 10 billion cups.
• Exports about 9,700 to 10,000 tonnes in the most recent year.
• Domestic sales are roughly 7,500 tonnes a year.
• More than 50 export markets, with Japan the number one destination.
• The United States share about five percent of exports.
• Export earnings are repeatedly estimated at around R600 million per year.
The bottom line
Rooibos is one of South Africa’s cleanest country-of-origin brands. It is rooted in a single place, competitive on sustainability, and already scaling in Asia and Europe. The red espresso story shows how South Africans can unlock new value without caffeine, without compromise, and with more jobs at home. The US tariff is a problem to solve, not a verdict on the sector. If we protect farm incomes now and execute on origin-led premiumisation, rooibos will keep compounding export value, rural employment and South Africa’s soft power long after today’s tariff headlines fade.
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Dr Brett Lyndall Singh is a medical doctor, Chief Executive of AOM Group and a scholar at the Tsinghua University Vanke School of Public Health in Beijing, China. He is a Brand South Africa Play Your Part Ambassador and member of the G20 Young Entrepreneurs Alliance.