"What we're currently considering is the possibility of expanding the automotive industry production plan so that we're able to mitigate the impact in our industry," Tau said in an interview with radio broadcaster Power FM.

"We're currently modelling what the potential package could be for the auto sector, but also for other sectors so that we can do it within the means of the country to buffer the impact."

The Automotive Production and Development Programme is an incentive programme that helps drive investment, innovation and job creation in the automotive industry. It offers various rebates and refunds on customs duties and manufacturers also receive incentives based on their production volumes.

The National Association of Automobile Manufacturers of SA has expressed concern over the 25% US import tariff on cars, saying that it cannot be absorbed by manufacturers, which will result in additional costs for US consumers and a reduced choice of SA-produced brands.

--Reuters--