In this interconnected world, American tariffs were going to catch up with South Africa eventually. Naamsa has now detailed the jeopardy automotive producers and exporters operating in South Africa could now face.
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South Africa’s automotive industry is bracing for a potential blow following the announcement by U.S. President Donald Trump, who has introduced sweeping new tariffs on foreign goods as part of what he has dubbed the “Liberation Day” trade measures. Among them is a 30% tariff on all South African products exported to the U.S., including vehicles and components, with cars built outside of the United States immediately facing a 25% import duty.
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The National Association of Automobile Manufacturers of South Africa (naamsa) has expressed serious concern over the development, warning that the new measures could damage South Africa’s automotive sector — a key pillar of the national economy. The U.S. is the third-largest destination for South African vehicle exports, with R35 billion worth of vehicles shipped to American shores in 2024 alone.
“The U.S. decision undermines existing trade agreements and the principles of a fair, rules-based global trading system,” said naamsa CEO Mikel Mabasa, speaking at the Gauteng Investment Conference in Johannesburg. “These tariffs threaten jobs, investment, and the long-term stability of our export programme.”
According to the president’s administration, these tariffs are intended to correct long-standing trade imbalances, protect American manufacturing, and reduce the U.S. trade deficit. By imposing higher duties—particularly on countries with large trade surpluses—Trump aims to encourage fairer trade practices and boost domestic industry. Critics like naamsa however, warn the move could raise prices for American consumers, disrupt global supply chains, and strain international relations, more so with precarious politics between both countries. The long-term impact remains uncertain, but the U.S. maintains that the measures are necessary to restore economic balance and industrial strength.
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South African-based plants operated by BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota, and Volkswagen all stand to be affected. The added costs of tariffs are unlikely to be absorbed by manufacturers and will likely be passed on to U.S. consumers, potentially eroding demand for South African-built vehicles. This could be massively detrimental and naamsa has called on the South African government to urgently engage the U.S. administration, seeking clarity on the future of the African Growth and Opportunity Act (AGOA) and pressing for fairer treatment of local exports. With the relationship between political affiliates between both countries being more strained than ever, this places the South African manufacturing sector in even more of a precarious position than ever before.
That aside, Mabasa confirmed that naamsa will use the upcoming OICA Council meeting in Washington, D.C. on 18 April to lobby for South Africa’s interests amist these American tariffs, stating: “We will continue to advocate for industrial growth and job creation while defending the gains we’ve made in the sector.”
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