SA, whose exports of vehicles and parts into the United States is estimated at over $2 billion, could take a severe hit from a planned tariff of 25% on automobile imports unveiled last week by US President Donald Trump.

Tau said in a statement that the US Section 232 tariffs are expected to apply to imports of cars and car parts from countries, including South Africa, that benefit from the US African Growth and Opportunity Act (AGOA).

AGOA provides duty-free access to the US market for most agricultural and manufactured products, such as cars and parts exported by eligible African countries.

"Automobile exports from South Africa accounted for 64% of South Africa's exports under AGOA in 2024, and are therefore a significant component of products currently benefiting under the preferential programme," Tau said.

While South Africa's car exports to the US go duty-free under AGOA, US imports into South Africa also enjoy rebates under the country's Automotive Production Development Programme.

South Africa's exports of automobiles accounts for only 0.99% of US total vehicle imports and 0.27% of auto parts "and thus do not constitute a threat to US industry", Tau added.

"South Africa will seek a meeting with the US authorities to discuss these developments, given the potential negative effect on the South African economy," Tau said.

The representative body of South Africa's automotive industry, NAAMSA has said that it was actively assessing the potential impact of these tariffs and that it was engaging with its members and other key stakeholders.

Among the car brands that SA exports to the US are Mercedes-Benz and BMW.

--Reuters--