Trade and Industry Minister hopes to meet with US over tariffs on South African vehicles

JOHANNESBURG -Trade and Industry Minister Parks Tau says government is hoping for a meeting with the US over tariffs on South African vehicles.

This follows a proclamation by US President Donald Trump on plans to impose a 25% import tariff on cars and car parts from its trade partners.

Washington’s decision has been met with fierce criticism by global car exporters, making geopolitical ties more fractious.

The tariffs are tipped to take effect on Thursday.

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The duties will apply to all countries, including those with free trade agreement with the US, with the exception of countries party to the US, Mexico, Canada free trade agreement.

The Section 232 tariffs on cars and car parts will also apply to imports of steel and aluminium products from African Growth and Opportunity Act (AGOA) beneficiary countries, including South Africa.

Automobile exports from South Africa accounted for 64% of South Africa’s exports under AGOA last year.

South Africa’s exports of cars account for almost 1% of US total automobile imports and auto parts account for a quarter of that.

Despite the US flagging national security concerns and worries about imports eating into the country’s manufacturing base South Africa doesn’t believe it poses any threat the US’ base.

Given the potential negative effect on the South African economy, South Africa says it will seek a meeting with US authorities to discuss these developments.

A South African delegation of diplomats also met with Washington officials this week in a bid to reset the relationship between the two countries.