Donald Trump’s 25% tariffs on imported vehicles will ‘affect South Africa hugely’ – Naamsa
The United States has imposed 25% tariffs on imported vehicles and car parts. They come into effect on Wednesday.
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
702s Bongani Bingwa speaks with Mikel Mabasa, CEO of Naamsa (The Automotive Business Council).
Listen below:
In 2023, South Africa exported R270.8 billion of vehicles and components around the world, of which R27.9 billion went to the United States (US).
South Africa enjoyed a significant advantage of duty-free access to the US thanks to the African Growth Opportunities Act (AGOA).
However, on Wednesday the Trump administration’s 25% tariff on all foreign-made vehicles comes into effect, meaning Americans would have to pay a lot more for a car made in South Africa.
As a result, we will likely see fewer orders from the US.
Mabasa says Naamsa is concerned but not surprised as it was clear the tariff increases were coming.
“It will affect South Africa hugely.”
- Mikel Mabasa, CEO - Naamsa
He adds that the US will have seen the growth in China and India’s vehicle manufacturing sector as a threat to their local industry.
“The US has a strong auto industry and I think the US President is going to do everything in his power to try and protect the manufacturing base of the US.”
- Mikel Mabasa, CEO - Naamsa
Scroll up to the audio player to listen to the interview for more.