Trump's 30% tariffs are a crisis in the making for SA's car industry: Naamsa
South Africa failed to reach a trade deal with the US by the August 1 deadline, resulting in President Donald Trump imposing the tariff to take effect from the first week of August. It is expected to potentially cause job losses in South Africa's automotive and agriculture industries.
'The imposition of these tariffs is deeply disappointing and has far-reaching implications. Without an urgent trade remedy, the socioeconomic fallout could be severe,' said Naamsa CEO Mikel Mabasa on Friday.
The tariffs — and the broader uncertainty in US-Africa trade relations — strike at the heart of South Africa's industrialisation agenda and threaten future investment in high-value manufacturing, said Naamsa.
'For South Africa's automotive sector — already bearing the brunt of a sharp export contraction to the US market in the first half of 2025 — this latest development is a relative loss of competitiveness as peer countries retain or negotiate lower rates.
'Though some sectors, such as base metals, will remain largely exempt, the automotive industry stands exposed in immediate volumes and long-term market access.'
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