Trump's 30% tariffs could kill SA motor industry growth, warns union
Trump said the new tariffs, set to take effect on August 1, are necessary because South Africa exports more to the US than it imports, a claim local experts reject.
Dawie Roodt, founder and chief economist of the Efficient Group, told Misa: 'Trump's figures are not based on actual figures, but everyone will feel the impact because it will hinder any economic growth.
'These tariffs take away any competitive edge South Africa had in competing with the global market,' he said. 'Small retailers have already stopped manufacturing because it will not be feasible to continue with the new export tariffs, or because of a reduced demand from US clients.
'We can now accept that Agoa (the African Growth and Opportunity Act) is dead. Under Agoa, more than 1,800 South African products and goods, including vehicles, components and parts, were exported to the US duty-free,' Roodt added.
The blow comes just as unemployment in South Africa edged up to 32.9% in the first quarter of 2025, the highest since the second quarter of 2024.
'The population has seen a steady increase year-on-year, with a growth rate of 1.33%. We live in a country where our population growth exceeds our economic growth. This makes job creation highly unlikely,' Roodt said.
Misa CEO Martlé Keyter added: 'The retail motor industry, in which Misa is the majority trade union, is already struggling amid the uncertainty of tariff increases which started when President Trump came into office earlier this year.'
'The union is experiencing an increase in employers closing their doors, restructuring in terms of Section 189 of the Labour Relations Act, or embarking on short time.'
Tiekie Mocke, manager of Misa's legal department, said: 'The negative impact on exports forced an employer within the retail motor industry to cut a five-day work week to four days, effectively leaving employees out of pocket by at least one week's income per month.
'This was done proactively to prevent retrenchments but cannot continue indefinitely,' she added.
Keyter urged the government to act decisively. 'This is not about who is right or wrong, but about what is in the best interest of South Africa.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Eyewitness News
24 minutes ago
- Eyewitness News
Trump says to raise tariff on India over Russia oil purchases
WASHINGTON - President Donald Trump threatened Monday to hike US tariffs on goods from India over its purchases of Russian oil - a key source of revenue for Moscow's war on Ukraine. New Delhi quickly pushed back, saying the move was unjustified and vowing to protect its interests. Trump's heightened pressure on India comes after he signaled fresh sanctions on Moscow if it did not make progress by Friday towards a peace deal with Kyiv, more than three years since Russia's invasion. Moscow is anticipating talks this week with the US leader's special envoy Steve Witkoff, who is expected to meet President Vladimir Putin. On Monday, Trump said in a post to his Truth Social platform that India was "buying massive amounts of Russian Oil" and selling it for "big profits." "They don't care how many people in Ukraine are being killed by the Russian War Machine," Trump added. "Because of this, I will be substantially raising the Tariff paid by India to the USA." He did not provide details on what tariff level he had in mind. Even before the threat, an existing 10 percent US tariff on Indian products is expected to rise to 25 percent this week. "The targeting of India is unjustified and unreasonable," India Foreign Ministry spokesman Randhir Jaiswal said in a statement, after Trump's announcement. "Like any major economy, India will take all necessary measures to safeguard its national interests and economic security." India has become a major buyer of Russian oil, providing a much-needed export market for Moscow after it was cut off from traditional buyers in Europe because of the war. That has drastically reshaped energy ties, with India saving itself billions of dollars while bolstering Moscow's coffers. But India argued it "began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict." The world's most populous country is not an export powerhouse, but the United States is its largest trading partner.
eNCA
an hour ago
- eNCA
Brazil judge puts ex-president Bolsonaro under house arrest
BRAZIL - A Brazilian judge on Monday placed former president Jair Bolsonaro under house arrest for breaking a social media ban, escalating a dramatic standoff between the court and the politician, who is accused of plotting a coup. Bolsonaro is on trial at the Supreme Court for allegedly plotting to cling onto power after losing 2022 elections to President Luiz Inacio Lula da Silva. President Donald Trump has sought to punish Brazil, a longtime US ally, for what he sees as a politically motivated "witch hunt" targeting Bolsonaro by imposing eye-watering tariffs on Latin America's biggest economy. The 70-year-old Bolsonaro is banned from social media for the duration of the proceedings, and third parties are barred from sharing his public remarks. But on Sunday, his allies defied the order by sharing footage online of a call between the former army captain and his eldest son Flavio at a solidarity rally in Rio de Janeiro. Supreme Court Justice Alexandre de Moraes reacted furiously, declaring that the judiciary would not allow a defendant to "treat it like a fool" because of his "political and economic power." Criticizing Bolsonaro's "repeated failure" to comply with the court's restrictions on him during the trial, he placed him under house arrest at his home in the capital Brasilia. He also barred the country's former leader (2019-2022) from receiving visitors, apart from his lawyers, and from using mobile phones, and warned that any new transgression would lead to him being detained. Several mobile phones were seized at his home on Monday, the police said. The new restrictions were expected to be met with fury in Washington. Writing on X, Bolsonaro's politician son Eduardo Bolsonaro, who successfully lobbied Washington to take punitive action against Brazil over the case, declared: "Brazil is no longer a democracy." He called Moraes, who is presiding over Bolsonaro's trial and has styled himself a defender of Brazilian democracy in the face of the far right, an "out-of-control psychopath." Last month, Moraes ordered Bolsonaro to wear an ankle bracelet and instituted the social media ban. Trump responded in unprecedented fashion by banning Moraes from the United States and freezing his assets in US banks. - 'Thank you Trump' - AFP | Sergio Lima Trump's pressure campaign has angered many Brazilians but endeared him to Bolsonaro's conservative base. At rallies in Rio, Brasilia and Sao Paulo on Sunday, some demonstrators waved US flags or held signs reading "Thank you Trump." Bolsonaro himself did not attend the rallies, having been ordered by the Supreme Court to stay home at night and at weekends throughout the trial. Prosecutors say he and seven co-accused tried to overturn his 2022 election defeat in a plot that only failed because the military did not get on board. He faces a 40-year sentence if convicted at the trial, which is expected to wrap up in the coming weeks. Bolsonaro's supporters stormed Brazil's congress in January 2023, after Lula was inaugurated, ransacking the chambers and attacking police, in scenes reminiscent of an attack by Trump supporters on the US Capitol two years before. Despite his trial, Bolsonaro is hoping to make a Trump-style comeback in 2026 presidential elections, despite being barred from running. Lula, 79, has said he could seek a fourth term, health permitting.
Daily Maverick
4 hours ago
- Daily Maverick
What does it mean to be South African? Navigating identity in a complex democracy
In a Daily Maverick webinar asking 'What does it mean to be South African?', professors William Gumede and Pierre de Vos joined Zukiswa Pikoli to delve into identity, citizenship and inclusion 30 years into South Africa's democracy. Here are 10 takeaways. 1. Defining South Africanness: A contested and plural concept The webinar highlighted that defining 'South Africanness' is contested terrain, especially 30 years into democracy. Unlike monocultural countries, South Africa's identity is plural and layered, based on multiple identities and an acceptance of difference rather than a single shared culture, language or race. 2. The Constitution as a 'civic religion' While South Africa boasts diverse cultures and languages, the Constitution and its democratic institutions serve as a common civic identity, a 'civic religion' that binds citizens together. It's seen as a crucial pillar for a country with a deeply divided past. 3. Beyond Western models of nationhood Traditional Western models of nationhood, often based on shared culture or language, don't fully apply to South Africa. The country's identity must be more embracing, incorporating the best elements of its diverse past, present, histories and cultures. 4. Addressing xenophobia and exclusion A critical concern raised is the potential for national identity to be used for exclusion, leading to xenophobia and other forms of discrimination. The discussion emphasised the need for a shared commitment and recognition of interdependence to foster a functional constitutional democracy. 5. The role of, and pressure on, the Constitution The Constitution, with its core values of human dignity, equality and freedom, is an aspiration. However, it faces immense pressure as visible inequalities persist, leading some to question whether these values are truly shared or merely promises unfulfilled. The document itself cannot act; it is about how people and institutions behave. 6. Transforming individual identity towards a broader South Africanness A significant challenge is to transform individual, narrow self-identities (e.g. based on race or ethnicity) into a broader South African identity. This requires more engagement in families, schools, workplaces and communities to foster a sense that one's specific group identity is just a piece of a larger South Africanness. 7. Cultivating empathy and solidarity across difference A crucial missing element in South Africa's nation-building project is empathy and solidarity across different groups. People tend to have empathy for those similar to them, but extending this compassion to those who 'don't look like you' is vital for a stronger common South Africanness. This needs to be actively taught and nurtured, starting in schools. 8. The peril of politicised identity The country's national identity is deeply intertwined with politics. When governance is poor, corrupt or incompetent, or when politicians exploit divisions for votes, it undermines the common South African project. There is a strong call for consequences for politicians who sow division. 9. Reimagining commemorations and recognising diverse contributions Commemorative days and national memory-making need to move beyond focusing solely on politicians or political parties. There's a strong need to memorialise the diversity of South African society, including forgotten and excluded individuals, artists, institution builders and sports stars, celebrating a broader range of contributions to the nation. 10. The importance of recognising and refining indigenous identities While recognising and bringing back indigenous identities erased by apartheid is crucial, it is equally important to critically evaluate and remove anti-democratic or anti-constitutional elements within these identities (e.g. patriarchy). The goal is to integrate the valuable aspects of indigenous identities with the constitutional value of equality. The discussion highlighted the ongoing journey of defining and strengthening South Africa's identity, emphasising the complexities of diversity, the role of foundational values and the need for active engagement from all citizens. DM
