The US has proposed various layers of import tariffs on SA goods, including a special car surcharge, the special Brics tariff and a country-specific “Liberation Day” tariff, and there has been no mention of the renewal of the African Growth & Opportunity Act (“SA seeks tariff reprieve before August 1”, July 7).
It should be taken as read that these will not be renewed until there is evidence to the contrary. An AI-generated response that ties this all together suggests that the tariffs on our car exports will have a material impact on the SA-based operations, and the home markets of these global manufacturers will also see disruptions and surplus manufacturing capacity coming available as tariffs move manufacturing to the US.
This will have a compounding effect on the competitive position of the SA car industry. A case can be made that our car sector has been kept alive by trade policies that supported an out-of-equilibrium market position (thanks to favourable regulations), and that correction to the long run in-equilibrium position (no subsidies, no protection, no tariffs) will be swift and brutal.
Greg Becker
Via email
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