Exports from South African small and medium-sized enterprises (SMEs) to the US have fallen by a massive 46% since April 2025, with small direct-to-consumer (D2C) brands bearing the brunt of the decline.
This sharp drop, revealed by the newly launched SME Export Index from international shipping platform TUNL, highlights the growing impact of US tariffs on South African businesses.
Launched on 20 October 2025, the SME Export Index is the first of its kind to specifically measure how US trade policies are affecting South African SMEs. The index is based on real-world shipping volumes from a fixed group of 1 850 exporters, offering a monthly snapshot of export trends and trade barriers.
Well-known South African brands such as Ciovita, Versus Socks, Freedom of Movement, Old School Brand, and Melvill & Moon are among those affected.
One major contributor to the downturn has been the removal of the USD800 de minimis waiver, which previously allowed low-value packages to enter the US duty-free. The waiver was revoked on 29 August 2025, meaning all packages regardless of value are now subject to tariffs.
“This change, combined with the 30% reciprocal tariffs announced in April, has significantly increased costs for US consumers and driven down demand,” explains TUNL CEO and co-founder Craig Lowman.
“Our data shows a 46% decline in SME export volumes to the US since 1 April 2025 – the baseline we used because it was just before the tariffs were introduced.”
The new cost pressures are proving devastating for smaller exporters who lack the scale to absorb additional fees.
“SMEs are vital to job creation and represent a powerful cultural export sector for South Africa,” Lowman says. “But these tariffs have landed like a sledgehammer, pricing many of our exporters out of the US market.”
TUNL COO Aretha Cooper notes that the US has traditionally been a high-growth market for South African SMEs, but the current tariff environment is making it near-impossible to stay competitive.
“With margins already tight, SMEs simply can’t absorb these added costs. This isn’t just a local issue, it’s part of a broader macroeconomic trend affecting small exporters globally.”
Cooper adds that transparency in shipping costs, duties and taxes is now more critical than ever for converting international shoppers into buyers. “For some merchants, it makes sense to pivot to alternative markets where trade agreements offer tariff relief,” she says. “But that’s not always an option.”
Reference:
1. TUNL