‘It’s unfair to target us,’ argues Cape Karoo International – ‘there’s no alternative’
The impact of a 30% duty on exports of ostrich leather and feathers from SA to the USA
Western boots made in the US and Mexico absorb about 20% of Cape Karoo International’s leather. Image: https://www.zdjoutlet.shop/
Mossel Bay, W. Cape, SA – Exports of ostrich leather to the USA account for approximately 20% of Cape Karoo International’s leather sales. In the United States, our leather is supplied to renowned cowboy boot manufacturers such as Justin Boot, Lucchese, and Anderson Bean. Since there is no local ostrich industry in the USA, these manufacturers rely entirely on South Africa for raw material—in this case, ostrich leather—for their production.
We therefore strongly believe that ostrich leather should be exempt from the new tariffs, as there is no domestic alternative and the industry is dependent on imports.
At present, our clients still have sufficient stock. However, in the medium term, we will need to engage with our partners to negotiate how the 30% tariff will be absorbed across the supply chain—by us as exporters, the importers, manufacturers in the USA, retail outlets, and ultimately, the American consumer. That said, this is easier said than done. It is simply not possible for us to absorb the full 30% tariff on our own.
While we do not anticipate any immediate or medium-term job losses, these tariffs will inevitably hurt Cape Karoo International—and if our business suffers, it will affect the entire value chain, including ostrich farmers and, ultimately, farm workers.
Furthermore, exports of ostrich feathers to the USA represent approximately 14% of our total feather sales. As with leather, we are currently in discussions with our clients in the United States to determine how the newly imposed tariffs will be shared across the supply chain.
In this clip, Al Jazeera interviews De Wet as well as a US bootmaker and a South African ostrich farmer, who unanimously explain the negative effects the tariff will have on their industry, coupled with the fact that the product is only available from South Africa.
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