South Africa will seek discussions with U.S. officials over proposed auto tariffs that could impact its vehicle exports, Trade Minister Parks Tau announced Tuesday. The country, which benefits from duty-free access under the African Growth and Opportunity Act (AGOA), could face a 25% levy on car and auto part imports recently proposed by U.S. President Donald Trump.
South Africa’s vehicle and parts exports to the U.S. are valued at over $2 billion annually, with automobiles making up 64% of its AGOA-covered exports in 2024. The proposed tariffs could significantly affect the industry, prompting concerns about economic repercussions.
While South African-made cars currently enter the U.S. duty-free under AGOA, the country also provides import rebates to U.S. car manufacturers through its Automotive Production Development Programme. Tau emphasized that South African exports represent just 0.99% of total U.S. vehicle imports and 0.27% of auto parts, arguing they pose no threat to American industry.
The National Association of Automobile Manufacturers of South Africa (NAAMSA) is assessing the potential impact, while the National Association of Automotive Component and Allied Manufacturers awaits details on which parts will be affected. CEO Renai Moothilal warned that in the short term, tariffs could lead to higher prices for U.S. consumers, while in the long term, they could weaken South African component manufacturers’ competitiveness.
South Africa exports brands such as Mercedes-Benz and BMW to the U.S. The government plans to engage with American authorities to discuss the potential fallout and advocate for continued preferential trade terms.
