Nokukhanya Mntambo28 March 2025 | 6:06

SA to be impacted by Trump's latest 25% car tariffs

Trump signed a proclamation that he said is meant to protect the US' domestic industrial base, which has been compromised by the growing foreign automotive industries. 

SA to be impacted by Trump's latest 25% car tariffs

US President Donald Trump signs an executive order in the Oval Office of the White House in Washington, DC, on January 20, 2025. Picture: Jim Watson/AFP

JOHANNESBURG - United States (US) President Donald Trump's decision to impose a 25 percent import tariff on cars and car parts has been met with fierce criticism as the auto sector weighs the impact of the costly move. 
  
This comes after Trump signed a proclamation that he said is meant to protect the US' domestic industrial base, which has been compromised by the growing foreign automotive industries. 
  
The tariffs are expected to hit Mexico, which is the top supplier of cars to the US- - followed by South Korea, Japan, Canada and Germany.

READ: Trump slaps 25% import tariff on vehicles, car parts coming into US  

A big portion of vehicles manufactured in South Africa is exported to the US.

The Automotive Business Council CEO, Mikel Mabasa said it will impact South Africa and that US consumers won’t be spared. 
  
"Those citizens in the US seeking to buy a certain vehicle will now have to pay more because more often than not, it is the citizens who are going to be taking that additional tariff, not necessarily the companies that are importing into those particular markets."
  
Mabasa said the industry plans to lobby government to impose counter tariffs. 
  
"We will obviously lobby and appeal to our government in South Africa and the rest of the continent to reciprocate in kind in making sure that the minerals that we also send to the US, we are able to impose similar if not higher tariffs in order for them for them to access those minerals."