Home Southern Africa South African Automobile Industry at a Crossroads with US Imposition of Additional...

Southern Africa

South African Automobile Industry at a Crossroads with US Imposition of Additional Levy

April 1, 2025

(3 Minutes Read)

National Association of Automotive Component and Allied Manufacturers (Naacam) CEO Renai Moothilal, the rallying point for the automotive industry, said that it was very concerned because preferential trade into the US market has been a bedrock of component production and for achieving economies of scale.

South Africa’s automotive industry is concerned about the levy of the US, a 25% import tariff on all automotive imports.

Moothilal further said that as long as the Africa Growth and Opportunity Act (Agoa) has been in force, there has been an increasing rate of penetration into the US market. South Africa benefits from duty-free access to the US market under Agoa, which remains vitally important to the South African automotive industry.

In 2023, the US was South Africa’s second-biggest automotive trading partner after Germany, with a total trade between the two countries valued at R56.75 billion. This comprised R27.94 billion in exports from South Africa to the US and R28.8 billion in imports from the US. The US tariffs are tariffs imposed under Section 232 of the US Trade Expansion Act of 1962, which means that they will override the Agoa agreement.

Naamsa also highlighted the uncertainty created by US President Donald Trump’s import tariff proclamation while revealing that it is actively assessing the potential impact of the 25% tariff imposed on imported automobiles and certain automobile parts into the US. The South African automobile industry is currently engaging with its members and other key stakeholders, including government authorities and trade partners, to determine whether Agoa preferences remain unaffected by the latest proclamation.