US Tariffs: SAFLEC urges government to fight for return to duty-free exports to US

The SA Footwear & Leather Export Council (SAFLEC) is urging the SA Government to request a return to duty-free exports of leather, footwear and leather goods exports to the United States, arguing that South Africa is not a significant contributor to the US’s imports, but that they nonetheless create jobs in SA.

In an email on 31 July to industry associations, clusters and stakeholders in the textile, clothing, leather, and footwear (CTFL) sectors, the Bilateral Trade Desk of the Department of Trade, Industry and Competition (DTIC) asked for comments on “a possible initial offer to the US of tariffs equal to those of the EU”.

SAFLEC executive director Nerisha Jairaj argued that wouldn’t work for the sectors her council represents.
“In short, when compared to EU rates, we are fine when access is duty-free, but in the HS codes calling for 10% and 20% tariffs (same as EU) put us at a disadvantage versus other African exporters, so we asked for a parity check,” she wrote.
“For reference, U.S. general tariffs are roughly:
• Ch. 41 (raw hides/leather): 4–6%
• Ch. 42 (handbags/leather goods): 8–20% (handbags ~8–10%)
• Ch. 64 (footwear): 8–10% for leather, up to 37.5% for some non-leather lines

“With AGOA we were duty-free. Compared to 0%, these hikes are a serious setback — especially in handbags and footwear, where margins are already tight. We also highlighted that our sector is not the U.S.’s biggest threat, and argued for a better agreement given its labour-intensive, high-employment potential.

“We suggested also it may be worth looking at U.S. import stats on footwear and leather goods into South Africa, and whether a bilateral agreement could be considered.”