Naamsa raises alarm over US tariffs on SA car exports

The Automotive Business Council, Naamsa, has raised concerns over new tariffs introduced by US President Donald Trump which impose additional duties on imported products.

The announcement includes a 30% tariff on South African products exported to the US. Naamsa described this as “deeply disappointing” and warned it could further strain diplomatic relations between the two countries. Vehicles produced outside the US will face an immediate 25% tariff, extending to other automotive products as well.

While Naamsa hopes the South African government will engage diplomatically with the Trump administration, it noted the tariffs add another challenge to an industry already facing economic pressures.

The council warned manufacturers cannot absorb the additional costs, which will lead to higher prices for US consumers and a reduced selection of South African-made vehicles. It urged the government to prioritise trade discussions to protect jobs, support consumer demand and promote economic growth.

“These tariff decisions, seen as part of a broader shift towards reciprocal tariffs, threaten to disrupt South Africa’s automotive exports and undermine our long-standing trade relationship with the US,” Naamsa said.

The US is South Africa’s third-largest destination for automotive exports, with R35bn worth of vehicles shipped in 2024 — representing 6.5% of total vehicle exports.

The proposed 25% tariff increase will significantly affect manufacturers in South Africa, including BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen, which produce vehicles for global markets, including the US.

Speaking at the Gauteng Investment Conference in Johannesburg, Naamsa CEO Mikel Mabasa warned the tariffs could have serious consequences for jobs and investment in South Africa’s automotive sector.

“The US decision to impose these tariffs undermines existing trade agreements and the principles of a fair, rules-based trading system. The South African auto industry contributes significantly to economic development, employment and industrialisation, and these tariffs could undermine our progress,” Mabasa said.

Naamsa said it would not speculate on how the tariffs might affect discussions on the renewal of the African Growth and Opportunity Act (Agoa). However, it urged the government to engage the US administration to clarify Agoa's future and ensure the local automotive sector is not unfairly penalised.

The organisation reaffirmed its commitment to fair and transparent global trade and will continue advocating for policies that support industrial growth and job creation.

Mabasa confirmed that Naamsa will attend the council meeting of the International Organisation of Motor Vehicle Manufacturers in Washington DC on April 18.

“We intend to use this opportunity to lobby and advocate for South African positions, highlighting how the current policy postures of the US administration will hinder the progress made in the development of the auto sector in South Africa,” Mabasa said.