• About
  • Advertise
  • Privacy Policy
  • Contact
Monday, October 19, 2026
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result
in Africa

Trump Tariffs Crush South Africa’s Car Exports

Lawrence Ankutseby Lawrence Ankutse
July 14, 2025
Reading Time: 3 mins read
Add as Preferred on Google
Trump Tariffs Crush South Africa’s Car Exports

Car shipments to the U.S. plummeted by 73% in the first quarter alone

South Africa’s automotive industry has been thrown into turmoil as exports to the United States nosedived in 2025 following a wave of import tariffs imposed by President Donald Trump. According to industry body naamsa, car shipments to the U.S. plummeted by 73% in the first quarter alone, with even more devastating drops of 80% in April and 85% in May.

The U.S. is South Africa’s second-largest trading partner and has traditionally served as a lucrative destination for vehicles assembled in the country, largely due to duty-free access granted under the African Growth and Opportunity Act (AGOA). But Trump’s aggressive trade policy shift has disrupted that long-standing relationship.

Naamsa CEO Mikel Mabasa described the downturn not merely as a business setback, but “a socio-economic crisis in the making.” He warned that the consequences of the tariffs could extend beyond the factory floor, threatening the stability of entire communities.

President Trump’s administration began its global trade offensive in April, imposing a 25% duty on imported cars, which was extended in May to include vehicle parts. This month, the campaign escalated with a sweeping tariff hike targeting over a dozen countries, South Africa among them, which will now face a punishing 30% rate beginning August 1.

ADVERTISEMENT

Before this latest announcement, South Africa had presented a proposal aimed at preserving access to the U.S. market. The package included a duty-free export quota of 40,000 vehicles annually and tariff-free entry for locally sourced car parts used in American manufacturing. But Washington rejected the overture, pushing ahead with the levies.

Trump Tariffs Crush South Africa’s Car Exports
President Donald Trump

Industry Faces Jobs And Revenue Crisis

South Africa’s automotive sector is a significant contributor to its economy, accounting for nearly 7% of GDP and more than 13% of the country’s total exports. In 2024, auto exports under AGOA brought in 28.6 billion rand ($1.6 billion), with the car industry responsible for a staggering 64% of all AGOA-linked trade between the two nations.

Mabasa said the tariffs imperil thousands of jobs across the country. In East London, where vehicle manufacturing is a primary economic driver, the fallout could be catastrophic. “If we cannot retain export markets like the U.S., we risk turning vibrant industrial hubs into ghost towns,” he cautioned, warning of “ripple effects across the automotive supply chain, from component manufacturers to logistics providers.”

He added that diversifying export markets was now urgent but acknowledged that such a shift “cannot happen overnight.” Global competitors, he noted, are already filling the void left by South African automakers in U.S. dealerships.

Major global brands with South African operations, including Toyota, Mercedes-Benz, Volkswagen, BMW, Ford, Isuzu, and Nissan, are expected to absorb higher costs, scale back production, and reconsider future investments. This could undermine the country’s broader economic strategy and industrial ambitions.

ADVERTISEMENT

Despite the turmoil, there are glimmers of resilience. Easing inflation and potential interest rate cuts have offered cautious optimism for domestic performance.

Moreover, the automotive sector is undergoing a green transformation. A generous 150% tax incentive for electric and hydrogen vehicles has attracted substantial investment from global automakers like Volvo and Toyota. The entry of Chinese and Indian brands has also increased competition, introducing more options and innovation to South African consumers.

Looking forward, the South African Automotive Masterplan outlines ambitious targets: doubling vehicle production to 1.4 million units by 2035, ramping up local content in manufacturing, and expanding trade across African markets. But experts say the road to recovery will be uphill without access to major export destinations like the United States.

ADVERTISEMENT

READ ALSO: NDC Lawyer Calls on President Mahama to Speak on Ablekuma Violence

ADVERTISEMENT

Sign Up to Our Newsletter

Fresh updates, Straight to your inbox

Tags: AGOA trade impactDonald Trump tariffsEast London auto industrynaamsa automotive dataSouth Africa car exports
Please login to join discussion
Previous Post

Banking Sector Shakeup: Five Ghanaian Banks Under Intense BoG Scrutiny Over Capital Failures

Next Post

Simons Warns Of Political Power Abuse In E&P, Azumah Clash

Related Posts

Egyptian President Abdel Fattah el-Sisi
Africa

Egyptian President Declares His Tenure Ends in 2030

October 17, 2026
National Police Commissioner General Fannie Masemola
Africa

South African Police Chief Reinstated After Charges Withdrawn

October 16, 2026
A healthcare worker wearing full personal protective equipment (PPE)
Africa

WHO Supports Kenya’s Efforts After Second Ebola Case

October 15, 2026
Human Rights Watch
Africa

HRW Sounds Alarm Over Executions in Libya

October 14, 2026
ADVERTISEMENT

Sign Up to Our Newsletter

Fresh updates, Straight to your inbox

ADVERTISEMENT

Recent News

image 273

Tennis Star Svitolina Announces Separation From Monfils

October 19, 2026
Lalid, Musician

Lalid Accused of Assaulting Artist After Cover Art Theft

October 19, 2026
Head, Public Relations Officer for the Ghana Education Service (GES), Daniel Fenyi

Government Must Be Commended for Resolving Teachers’ Demands

October 19, 2026
Minister for Energy and Green Transition, Dr John Abdulai Jinapor at AEW 2026

Jinapor Courts Energy Investors as Ghana Faces Delivery Test

October 19, 2026
Hilda Mensah, Child Lawyer, Child protection Specialits, UNICEF

Culture of Victim Blaming Why Girls Face Sexual Abuse – Mensah

October 19, 2026
ADVERTISEMENT
Next Post
E&P fights Azumah mines amid allegations of political power abuse

Simons Warns Of Political Power Abuse In E&P, Azumah Clash

The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Ok

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.