Mashatile warns of economic repercussions if trade dispute with US is not resolved
Deputy President Paul Mashatile has warned of serious economic repercussions across South Africa's automotive value chain if an amicable trade agreement is not reached with the United States.
Speaking at the opening of the P20 Women's Parliament in Cape Town on Thursday, Mashatile said that the imposition of a 30% tariff on South African automotive exports to the US threatens to disrupt established trade flows, undermine competitiveness, and put thousands of jobs at risk.
'We must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House,' Mashatile said.
He noted that South African suppliers supporting domestic original equipment manufacturers (OEMs) that export to the US would likely face production cutbacks, putting pressure on planning, employment, and investment.
'Because of this, they would be unable to compete with goods from nations that have continued preferential or zero-duty access, such as those in the USMCA,' he said.
Mashatile's comments come at a time when South Africa holds the G20 Presidency under the theme of 'Solidarity, Equality, Sustainability.'
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