South African exports to the US have dropped 46% since April 2025, with small direct-to-consumer (D2C) businesses hit hardest.
This is according to the SME Export Index, launched today by South African international shipping platform TUNL.
The SME Export Index is based on real shipping volumes from a fixed cohort of 1 850 South African exporters, and provides a monthly barometer of how tariffs are affecting small South African businesses that ship globally. These include household names like Ciovita, Versus Socks, Freedom of Movement, Old School Brand, and Melvill & Moon.
Craig Lowman, TUNL CEO and co-founder, comments: “Although the new 30% reciprocal tariffs were announced in April, consumers were largely shielded by the $800 de minimis waiver, which allowed packages valued at under $800 to enter the US duty-free.”
This waiver was revoked on 29 August 2025, meaning all packages are now charged a tariff, irrespective of the value of the goods. Combined with the reciprocal tariffs, this significant change has led to a sharp drop-off in US shipments in September as US consumers balk at import costs.
“Our data show a 46% drop in South African SME export volumes to the US last month, compared to the 1 April 2025 baseline, which we chose because it was just before the new tariffs were announced,” comments Lowman.
“SMEs represent jobs, entrepreneurship, and the future of South African cultural exports,” he adds. “The US tariffs have landed like a sledgehammer on our merchant community of small exporters, who are being priced out of the US market.”
The US has traditionally been a big growth market for local SMEs. However, with tariffs at this level, it’s almost impossible to compete on price without destroying margins, TUNL chief operating officer Aretha Cooper comments.
“For SMEs, there’s ust no room to absorb that kind of cost,” she says. “This is a global macroeconomic situation and affects many small businesses around the world.
“We believe transparent costs are critical to convert browsers into buyers, which is why we are helping local SMEs with the tools to clearly display duties and taxes at their checkouts,” Cooper adds. “For some merchants, however, it makes more sense to pivot their exports to other geographies, where existing trade agreements can provide relief from duties.”
Mark Fanner, owner of Fanner Guitar Works, which exports handmade ukuleles, guitars and frames, says: “It absolutely destroyed my business. The first weeks after the new tariffs, there were no orders from the States. We now have to add about 39% to every shipment, between tariffs, duties and fees. Sales are down roughly 50% and our refund rate has tripled since August.”