The department of trade, industry & competition aims to hold discussions with US authorities over the 25% tariffs imposed on all imported vehicles and foreign-made auto parts.
Though SA’s automotive sector enjoy preferential access to US markets through the African Growth and Opportunity Act (Agoa), the executive order signed by US President Donald Trump last week includes automotives and car components manufactured in SA.
Section 232 of the new tariff regime ushered in by the US Trade Expansion Act means automotives manufactured in SA will be taxed as those from non-Agoa beneficiary countries.
“Automobile exports from SA accounted for 64% of SA’s exports under Agoa in 2024 and are therefore a significant component of products currently benefiting under the preferential programme,” the department said in a statement.
“SA’s exports of automobiles accounts for only 0.99% of US total automobile imports and 0.27% of auto parts and thus do not constitute a threat to US industry.”
The tariffs will be implemented from April 3 and no later than May 3 for automobile parts.
“US imports of automotive and automotive parts from SA was estimated at just more than $2bn while US exports to SA were more than $1.1bn in 2024. While SA exports to the US goes duty-free under Agoa; US imports into the SA also enjoy rebates under the Automotive Production Development Programme,” the department said.
Trump did not make direct mention of SA when he signed the executive order but he previously said he expected auto companies to relocate to the US, criticising those that have opened facilities in Canada and Mexico that he claims have come at the expense of US workers.
The move from the Trump administration is the latest pressure point for SA which is looking to reset its trade and diplomatic relations with the US.
Trump has placed SA in his firing line since the start of his second term in January by halting all financial aid to SA and providing refugee status for white Afrikaners.
Trump has relied on a powerful right-wing domestic lobby and his SA-born billionaire adviser, Elon Musk, to justify his moves towards SA.
The US has also been critical of SA’s move to haul Israel before the International Court of Justice, accusing it of genocide against people in Gaza. SA minister of international relations & co-operation Ronald Lamola has said the country will not withdraw its case despite pressure from the US.
“I know that there is a yearning from some … for us to show that we’re courageous, we should be trading insults with countries, ignoring all the firm and courageous positions we’ve taken on progressive internationalism,” Lamola said on Tuesday during the inaugural Aziz Pahad memorial lecture.
“We’re practising diplomacy. We’re not in the business of trading insults with anyone in the world. We will remain firm on our principled positions. We will continue to pursue our national interest in line with diplomatic decorum. If we disagree with any country it should not be on the basis of insults but the substance of the matter.”
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