South Africa’s Vehicle Exports to the U.S. Plummet Amid Tariff Challenges

• South Africa’s vehicle exports to the U.S. saw an 80% drop in 2025.
• New tariffs imposed by Trump are threatening South African automotive jobs.
• The U.S. has historically been a strong trade partner for South Africa under AGOA.
• April and May experienced the largest declines in vehicle exports since tariffs were escalated.
• Automakers may need to reconsider investments as costs rise in South Africa.

Dramatic Decline in Vehicle Exports to the U.S.

South Africa’s vehicle exports to the United States faced a staggering decline in 2025, primarily due to the new import tariffs enacted by the U.S. government. Notably, figures illustrate that during April and May, there was a dramatic drop of over 80% in exports, raising alarming concerns about the potential impact on the local automotive industry. According to the National Association of Automobile Manufacturers of South Africa (naamsa), such a decline severely threatens jobs and the economic stability of industrial hubs that rely heavily on vehicle exports.

Escalating Tariffs Threaten Automotive Sector

The U.S. had historically been a significant trading partner for South Africa, especially under the African Growth and Opportunity Act (AGOA) which allowed for preferential access. Unfortunately, this access has been compromised due to a series of escalated tariffs initiated by President Donald Trump. Initially, a 25% tariff was imposed on South African vehicles in April, subsequently extending to automotive components in May. This troubling trend continued when the White House recently announced an even more stringent 30% tariff on all vehicle imports starting August 1.

Repercussions for Jobs and Investments in Automotive Sector

In 2024, the automotive sector formed a critical part of South Africa’s trade with the U.S., responsible for 64% of AGOA trade and generating around 28.6 billion rand (about $1.6 billion). The sharp declines in exports are already taking a toll, especially in manufacturing areas like East London where the automotive industry plays a crucial role in the economy. Industry leaders warn that automakers such as Mercedes-Benz, which export from South Africa, might face tough decisions regarding their operations, especially with rising costs and shrinking profit margins. The prospects for job retention and investment in the sector now seem increasingly uncertain.

The significant reduction in vehicle exports from South Africa to the U.S. has serious implications, particularly for jobs and industrial sectors connected to automotive manufacturing. Following the introduction of heightened tariffs by the U.S., the South African automotive industry is now navigating uncertain waters. With automakers facing rising costs and potential production cuts, the future of this vital sector hangs in the balance.