South African Small Businesses See Improvement in United States Exports: Report

(small.news) — Small businesses in South Africa are seeing an improvement in direct-to-consumer (D2C) exports with the United States for October, according to IOL.

This data was published by the TUNL, a South African international shipping company, and claimed that business owners have seen a 23% improvement. This is up from the 52% drop that was seen for September.

Despite the improvement for October, it is still 40% below from April, when President Donald Trump started imposing tariffs on countries around the world.

Impact of Policies in The United States

The CEO and co-founder of TUNL, Craig Lowman, said, “The sustained drop reflects the ongoing impact of U.S. policy decisions, which have made small-parcel exports directly to consumers far less economical.”

Lowman also said that lower consumer demand in the United States, as well as the confusion around product classifications and duties, has made things harder for retailers in South Africa. To put this into perspective: Apparel exports in South Africa have gone down by 78% since April, and Cosmetics and Skincare products have dropped by 80% because of increased costs and lowering demand from U.S. consumers.

On the other hand, products that have been exempted from some tariffs, including books and art, have remained steady. While these numbers might not seem too alarming, IOL explains that “each percentage point of export change translates to thousands of jobs lost or gained across manufacturing, logistics, and support services sectors.”

The TUNL COO, Aretha Cooper, said that they have seen dips in September before. However, “this year’s subdued recovery shows that the landscape is markedly different.”

South African Small Business Owners Adjusting

Thankfully, many small businesses in South Africa used September as the month to re-strategize based on the tariffs and consumers interest. Some owners, for example, decided to focus on consumers who are used to seeing duties. Other businesses have decided to put information about tariff costs and fees in their checkout process for U.S. consumers.

Lowman explained, “Our merchants are learning to reach new markets and build resilience, showcasing the innovative spirit of local SMEs.” With the holidays quickly approaching, the last quarter of 2025 could be challenging for these small businesses.

Lowman is telling exporters they should brace for this volatility while still trying to find other options to help mitigate the risks.