South Africa's Car Exports to the US Plummet Due to Trump's Tariffs

According to foreign media reports, the National Association of Automobile Manufacturers of South Africa (NAAMSA) recently stated that due to President Trump's 25% tariff on imported cars, South Africa's car exports to the United States dropped significantly by 73% in the first quarter of 2025, with export volumes plummeting by 80% and 85% in April and May, respectively. The US is South Africa's second-largest trading partner and an important export destination for South African cars. For a long time, vehicles produced in South Africa were exempt from tariffs when entering the US market under the African Growth and Opportunity Act (AGOA). However, Trump's tariffs have disrupted this situation. This month, Trump escalated his global trade offensive initiated in April by announcing additional tariffs on several countries, including South Africa, which will face a 30% tariff starting August 1. This new tariff is separate from the 25% tariff on cars imposed in April, and since May, this 25% tariff has also applied to automobile parts. Before Trump announced the new tariffs, South Africa had proposed a trade scheme that included an annual quota of 40,000 cars that could be exported to the US duty-free, as well as duty-free entry for locally sourced auto parts used in US production. The NAAMSA stated that in 2024, the South African automotive industry accounted for 64% of all trade under the AGOA framework with the US, generating R28.6 billion (approximately $1.6 billion) in export revenue. The association indicated that the sharp decline in car exports is unlikely to recover in the short term. NAAMSA CEO Mikel Mabasa stated, 'This is not just a trade issue; a socio-economic crisis is brewing as a result.' Mabasa noted that the tariffs threaten thousands of jobs and could lead to economic disasters for communities reliant on the industry, such as East London, where the automotive sector is the economic backbone of the coastal city. He stated, 'If we cannot maintain export markets like the US, some vibrant industrial centers in South Africa could turn into ghost towns, which would have a ripple effect throughout the automotive supply chain, including parts manufacturers and logistics suppliers.' Mabasa added that diversifying exports is crucial, but it is not an overnight process. He pointed out that global competitors have begun to shift their exports to markets traditionally served by South Africa. This increasing pressure will force South African automotive companies, including Mercedes-Benz, that export cars to the US to bear rising costs, reduce production, and reassess future investment plans.