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News24 reports that automotive business council Naamsa says tariff announcements from the US could plunge SA’s auto industry into a “socioeconomic crisis.”
Auto hubs in the Eastern Cape also risk becoming “ghost towns” as the industry contends with a 25% tariff from the US since April, which is now set to rise to 30% from August. The US is currently SA’s second-largest auto trade partner, behind Germany. SA’s auto exports were previously able to enter the US duty-free as part of the African Growth and Opportunity Act (AGOA) before the tariffs came into effect. In a statement released on Monday, Naamsa said that multiple tariff threats have placed pressure on several original equipment manufacturers (OEMs) in SA, and that any production losses in the export market could have ripple effects, including potential job losses. According to Naamsa, auto exports to the US have plunged in recent months, including before the 25% tariff came into effect in April. It said that losses in export earnings would also be difficult to recover in the short term. “This [trade disruption] is not just a trade issue, it’s a socioeconomic crisis in the making. The US tariffs directly threaten thousands of jobs in our sector, disrupt hard-won industrial capabilities, and risk devastating communities such as East London, where the auto sector forms the economic heartbeat of the town. If we cannot retain export markets like the US, we risk turning vibrant industrial hubs into ghost towns,” Naamsa pointed out
- Read the full original of the report in the above regard by Na'ilah Ebrahim at News24 (subscription / trial registration required)
- Read too, Trump tariffs could wreck South Africa’s vehicle manufacturing industry, at TechCentral
Get other news reports at the SA LabourNews home page