South African macadamia farmers are looking for new markets after the US tax shock

Gene Likhanya started his macadamia nut farm with his own funds and built it up over twenty years in South Africa’s beautiful Madimbo valley. Now, U.S. import tariffs are making his business difficult, and he has to look for other markets.

South Africa grows the most macadamia nuts in the world. These nuts have a unique sweet flavor, and some people love them because they think they are good for you. The U.S. is its second-largest market, after China.

There are big plans for Likhanya’s business, which he has already grown to hire 78 people and make 25 tonnes of nuts this year. He wants to make three times as much in the next four years.

But President Donald Trump’s plan to raise taxes could make that hard to do.

Trump revealed “reciprocal” levies on April 2; they were set at 31% for South Africa. These levies have been put on hold to allow for negotiations, but Likhanya said that he and other macadamia nut farmers were already looking for other markets.

“I think we can do a lot more to explore other markets around the world.” We have to talk to some markets right now. “We are in touch with India,” Likhanya, 40, told Reuters at his farm.

There are 1.5 billion people in India who are also looking for macadamia nuts. “There’s always a different plan.”

Other South African farmer groups have said that the U.S. taxes could be very bad. Growers of citrus fruits say that tariffs could hurt 35,000 jobs in their business. Each year, they send about $100 million worth of goods to the U.S.

The tariff standoff is a “lose-lose” situation, according to Likhanya, a board member at Macadamias South Africa, the main industry group for growers. He hopes it can be fixed.

“America brings in kernels, which they then process.” Those jobs (processing) are in danger. He said, “It’s either win-win or lose-lose, and I don’t think we want to get into that.”