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South African auto exports to the U.S. plummet as Trump tariffs bite

The South African auto exports to the United States fell sharply in 2025's first quarter, and dropped more than 80% between April and May, after tariffs imposed on imports by U.S. president Donald Trump affected automakers sales, said industry association naamsa. South Africa's largest trading partner and the main destination for South African vehicles, the United States has long enjoyed duty-free access through the U.S. African Growth and Opportunity Act.

naamsa reported that auto exports to the U.S. fell 73% during the first quarter compared with the same period in 2013. This was followed by drops of 80% in March, 85% in April, and 73% in May. The industry group said that the steep decline in exports would be hard to recover from within the next few months.

Mikel Mabasa, CEO of naamsa, said: "This isn't just a business issue. It's a social-economic crisis that is brewing."

Trump escalated his global trade offensive launched in April this month, announcing new tariffs for more than a dozen nations including South Africa. The country will be charged a 30% tariff starting August 1. The 25% tariff on cars imposed in April has been extended to auto parts since May. South Africa proposed a trade package before Trump's announcement of tariffs in July. It included a duty free quota for South Africa to export 40,000 vehicles annually and duty-free access from local automotive components for U.S. manufacturing.

According to naamsa, in 2024 the automotive sector of South Africa will account for 64% all AGOA trade between the U.S. and South Africa, generating export revenues worth 28.6 billion Rand ($1.60 billion).

Mabasa stated that the tariffs could threaten thousands of jobs, and economic ruin in communities who rely on this sector. For example, East London is a coastal town where the auto industry plays a central role to its economy.

Mabasa warned that if we don't retain export markets such as the U.S. we could turn vibrant industrial hubs like Detroit into ghost towns. This would have ripple effects throughout the entire automotive supply chain from component manufacturers to logistic providers.

Mabasa said that diversifying exports is important, but it cannot be done overnight. He noted that international competitors are already re-directing their exports to markets traditionally served South Africa.

Mabasa stated that the mounting pressure on automakers in South Africa exporting to U.S. will force them to absorb rising costs and scale back production as well as reconsider future investments.

(source: Reuters)