South Africa's auto industry braces for potential U.S. tariffs

Record ID: 1987770

  • Title: South Africa's auto industry braces for potential U.S. tariffs
  • Date: 2nd April 2025
  • Summary: PRETORIA, SOUTH AFRICA (APRIL 2, 2025) (REUTERS) EXTERIOR OF BMW PLANT BMW LOGO VARIOUS OF BMW CARS PASSING THROUGH SECURITY AT PLANT VARIOUS OF BMW CARS LEAVING PLANT TRUCK LOADED WITH BMW CARS DEPARTING PLANT UNKNOWN LOCATION, SOUTH AFRICA (APRIL 2, 2025) (REUTERS) (SOUNDBITE) (English) EXECUTIVE DIRECTOR OF SOUTH AFRICA'S NATIONAL ASSOCIATION OF AUTOMOTIVE COMPONENT AND
  • Embargoed:
  • Keywords: AGOA Automotive Car Economy Employment Export Finance Government Industry Jobs Musk Politics South Africa Tariff Trade Trump USA Unemployment Work
  • Location: VARIOUS, SOUTH AFRICA
  • City: VARIOUS, SOUTH AFRICA
  • Country: South Africa
  • Topics: Africa,Company News Markets,Economic Events
  • Reuters ID: LVA001357802042025RP1
  • Aspect Ratio: 16:9
  • Story Text: South Africa's automotive industry faces potential disruption as U.S. President Donald Trump prepares to announce new reciprocal tariffs against global trading partners on Wednesday (April 2).
    The planned 25% tariff on automobile imports could significantly impact South Africa's vehicle and parts exports to the United States, valued at over $2 billion. South African Trade and Industry Minister Parks Tau said the government would seek discussions with the Trump administration about the tariffs' potential negative effect on the country's economy.
    Automobile exports account for 64% of South Africa's exports under the U.S. African Growth and Opportunity Act (AGOA), which provides duty-free access to the U.S. market for most South African products.
    South African officials argue their automotive exports, at less than 1% of U.S. total vehicle imports, do not threaten the U.S. industry. The National Association of Automobile Manufacturers of South Africa (NAAMSA) is assessing the potential impact on local producers, including Mercedes-Benz and BMW.
    Trump's expected announcement follows earlier tariffs on aluminum, steel, and Chinese goods, raising concerns about a potential full-blown trade war and its impact on the global economy.
    (Production: Catherine Schenck, Xolani Nhlapo, Siyabonga Sishi)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2025. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
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