Following
the latest update, a 30% tariff on foreign imports is set to come into effect on August 8 if no agreement is reached.
The proposed tariff threatens to significantly impact South Africa’s ostrich industry, particularly in the Klein Karoo region, where Oudtshoorn, often dubbed the “ostrich capital of the world,” serves as the epicentre of production.
Ostrich leather from this region is a staple for top American cowboy boot brands including Justin Boot, Lucchese and Anderson Bean, who rely exclusively on imports from South Africa due to the lack of a domestic ostrich leather supply.
Exports of ostrich meat, feathers and leather collectively generated ZAR578.8 million (US$32.66 million) in 2021, with the U.S., France, and Mexico among the top destinations for leather goods.
Cape Karoo International (CKI), which represents around 200 ostrich farmers, said that approximately 20% of its leather sales are to the U.S. market.
Managing Director Francois de Wet noted that there is no viable domestic alternative for U.S. manufacturers: “We therefore strongly believe that ostrich leather should be exempt from the new tariffs. Since there is no local ostrich industry in the U.S., these manufacturers rely entirely on South Africa.”
De Wet added that while current stock levels are adequate, any prolonged tariff imposition will require renegotiation throughout the supply chain.
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