*Correction: A previous version of this story inferred that Steers uses frozen chips. Famous Brands, which owns the brand, says Steers does not use frozen chips.

South Africa may face a slap chips shortage towards the festive season, as the newly imposed import tariffs of up to 181% threaten supplies from Europe, but you may still find them at fast food outlets and restaurants.

The new tariffs, which came into effect in July, may force European producers to ditch South Africa as an export destination and push them to secure alternative markets. This, in turn, will send local prices for chips higher and lead to shortages, according to Hume International.

South Africa's International Trade Administration Commission (ITAC) recently imposed heavy import tariffs to protect the local potato industry against dumping by European suppliers. It introduced duties on frozen chips of up to 23% for Belgium, 104% for the Netherlands, and 181% for German suppliers.

The steep import taxes will pose a challenge for South Africa, which does not supply enough raw material to meet local demand for frozen French fries, Fred Hume, director for import-export business, Hume International, said.

But fast food outlets and restaurants may be saved by South African French fry producers who are likely to direct supply to major fast food chains and quick service restaurants, leaving little stock for exports.  if any is available at all, Hume International said.

“These customers rely on frozen French fry imports to meet their needs for the simple reason that they are not able to get consistent supply locally,” Hume said.

He said the taxes come at a time when the local potato harvest has been poor over the past few months, which may hurt local supplies further.

“…Ultimately, it’s not a question of dumping or cheaper prices – in many cases, these customers will actually pay more for the imported products just to guarantee their supply of quality fries,” he said.

In 2021, South Africa imported nearly 24,000 tons of frozen chips, also helping to plug the country's potato shortfall last year.

Hume warned of exponential price hikes, stating that a 2.5kg bag of frozen chips from Germany with import taxes of 181% could cost between R160 to R170.

*Correction: A previous version of this story inferred that Steers uses frozen chips. Famous Brands, which owns the brand, says it does not use frozen chips.