Local industry fears loss of exports to key American market
30 March 2025 - 00:00
By Khulekani Magubane, Financial reporter
The Trump administration’s 25% tariff on imports of vehicles and light trucks is bad news for South Africa’s auto manufacturing industry.
Key Concerns for SA's Auto Industry
- Loss of Exports: The tariffs could significantly reduce South Africa's vehicle exports to the key American market.
- Economic Impact: This reduction in exports could have a knock-on effect on the broader South African economy, impacting jobs and revenue.
- Industry Competitiveness: The tariffs make South African-produced vehicles less competitive in the US market.
Impact on Carmakers
- Most carmakers affected: The tariffs are expected to affect most car manufacturers exporting to the US.
- Tesla less affected: Some companies like Tesla may experience a lesser impact.
Potential Consequences
- Increased Car Prices: US buyers may face higher car prices due to the tariffs.
- Limited Options: The variety of car models available to US consumers could decrease.