I have imported a few Pokemon with safari balls, and while they display and breed as usual if you try to surprise trade with them it says 'there is a problem with your pokemon' and kicks you out the trade.
For those who aren't aware:
If you import Alolan or original forms of Pokemon that you can't otherwise catch in Sword/Shield, you can view them as alternate forms in your Pokédex by hitting left or right.
You can breed Alolan/Galarian/Original forms by giving the form you want to keep an everstone before breeding it.
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I have imported a few Pokemon with safari balls, and while they display and breed as usual if you try to surprise trade with them it says 'there is a problem with your pokemon' and kicks you out the trade.
For those who aren't aware:
If you import Alolan or original forms of Pokemon that you can't otherwise catch in Sword/Shield, you can view them as alternate forms in your Pokédex by hitting left or right.
You can breed Alolan/Galarian/Original forms by giving the form you want to keep an everstone before breeding it.