Mabuyane says import tariffs imposed by US will devastate EC's automotive sector
Earlier this month, US President Donald Trump announced a baseline tariff of 10% on all trading partners, threatening higher tariffs for some countries.
GQEBERA - Eastern Cape Premier Oscar Mabuyane says the import tariffs imposed by the US will have a devastating impact on the province’s automotive sector.
Earlier this month, US President Donald Trump announced a baseline tariff of 10% on all trading partners, threatening higher tariffs for some countries.
ALSO READ: Presidency concerned about new Trump tariffs
This followed a decision to impose a 25% import tariff on cars and car parts.
During the Eastern Cape government’s engagement with the Cabinet on Wednesday, Mabuyane said an urgent solution is needed.
The automotive industry contributes just over 5% to South Africa’s GDP, with a significant portion coming from the Eastern Cape.
The province is home to major car manufacturing plants for global automotive giants Mercedes-Benz, Volkswagen and Isuzu, which are crucial in driving the province’s economy.
Mabuyane says that if the United States maintains its high tariffs, the automotive sector will face challenges that could hinder its contribution to the economy.
“The automotive sector is still the pillar of our provincial economy. We host more than any other province in the country. We are worried about the issue of tariffs that the USA is imposing on our country. This morning, I had a worrying message from the ceo of Mercedes-Benz for a meeting that he wants to have.”
The Presidency's spokesperson, Vincenet Magwenya, says the state is still analysing how the tariffs could impact the country should the 90-day pause be lifted.