South Africa’s vehicle exports to US decimated by Trump’s tariffs
South Africa’s vehicle exports to the United States have dropped dramatically
Image: Supplied
South Africa’s vehicle exports to the United States have dropped dramatically following the imposition of US tariffs, with declines of 73% in the first quarter of 2025, and further falls of 80% and 85% in April and May, respectively.
This is according to the Automotive Business Council (Naamsa), which said that the sudden collapse in exports threatens one of "South Africa’s most globally integrated industries" and poses a serious risk to jobs, investment.
Earlier this year, US President Donald Trump imposed a 25% tariff on all vehicles imported into the US and has since upped the ante on South Africa, informing President Cyril Ramaphosa last week that South Africa will be hit with a 30% tariff on all its exports to the United States from August 1.
"The announcement and anticipation of the recent tariffs have had a devastating and immediate impact on trade performance, even before the formal effect of the tariffs," the industry body said.
"Vehicle exports to the U.S. dropped by 73% in Q1 2025, followed by a further decline of 80% and 85% in April and May, respectively. This represents a risk of a direct loss of vehicle and component export volumes, and annual export earnings, which would be difficult to recover in the short term".
The US has been South Africa's largest trading partner and "key export destination for SA-manufactured vehicles".
"Since the inception of the African Growth and Opportunity Act [AGOA], the automotive industry has benefited from substantial two-way trade and investment.
"In 2024, the auto sector accounted for 64% of all AGOA trade between South Africa and the U.S., generating R28.6 billion in export revenue, with 24,681 vehicles exported to the United States under AGOA".
Naamsa CEO Mikel Mabasa warned that the tariffs are not just a trade issue but a socio-economic crisis in the making.
“This is not just a trade issue - it’s a socio-economic crisis in the making. The U.S. tariffs directly threaten thousands of jobs in our sector, disrupt hard-won industrial capabilities, and risk devastating communities such as East London, where the auto sector forms the economic heartbeat of the town. If we cannot retain export markets like the U.S., we risk turning vibrant industrial hubs into ghost towns.” Mabasa said
He added that the ripple effects of production loss due to disappearing export markets will be felt across the entire automotive value chain.
“Export diversification and finding new markets is not something that can be achieved overnight. Our global competitors are already redirecting their exports into markets we traditionally serve. This intensifies the pressure on our OEMs, who must now absorb rising costs, reduce production, and reconsider future investments,” added Mabasa.
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