2 days ago
Paul Mashatile punts new US trade proposal for tariff relief
Deputy President Paul Mashatile said the adoption of a new trade proposal to the US could relieve tariff-related pressures on the automotive manufacturing sector.
Mashatile was addressing journalists and delegates on the final day of the 2025 National Association of Automotive Component and Allied Manufacturers (Naacam) Show in Gqeberha this week.
"[The proposal] aims not just to settle the 30% tariff but also has ramifications for more than 130 other trading partners who may reroute products into the South African market,' he said. 'The imposed tariffs threaten to disrupt well-established trade flows and weaken the global competitiveness of South Africa's automotive manufacturing ecosystem,' the minister noted, adding that ongoing engagement with the US would yield practical solutions.
'I 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 encouraged collaboration under the 2018 African Continental Free Trade Area (AfCFTA); whose mandates include reducing trade barriers, fostering regional value chains and harmonising regulations.
'Creating a single continental market for goods and services could potentially lead to increased trade, investment and job creation in Africa.'
The deputy president acknowledged the need to protect the automotive sector, which employs about 115,000 people, of whom 80,000 work in the component sector.
'We must never allow the loss of these gains because of external and internal pressures.'
He cited Naacam's recording of 12 company closures as worrying, reported to have affected 4,000 individuals.
'What is of more concern are the recently released figures by Stats SA showing that the country's unemployment rate has climbed to 33.2% in the second quarter of 2025, up from 32.9% in the previous quarter.'
