South African car exports to the United States plummeted sharply in the first quarter of 2025, and then “tumbled more than 80% in April and May” after new import tariffs imposed by U.S. President Donald Trump hit automakers’ sales, according to the industry association Naamsa.
The United States holds a significant position as South Africa’s second-largest trading partner and a crucial destination for vehicles manufactured in the country. These vehicles have historically benefited from duty-free access under the U.S. African Growth and Opportunity Act (AGOA).
Naamsa reported that auto exports to the U.S. “sank 73% in the first quarter compared to the same period last year,” followed by further “declines of 80% in April and 85% in May.” The industry body expressed concern that “the sharp decline would be difficult to recover in the short term.”
Naamsa CEO Mikel Mabasa warned of severe consequences, stating, “This is not just a trade issue – it’s a socio-economic crisis in the making.”
Trump escalated his global trade offensive this month, which began in April, by announcing tariffs on more than a dozen countries, including South Africa, which faces a “30% rate from August 1.” This new tariff is separate from the “25% duty imposed on cars in April,” which has also applied to automotive parts since May.
Before Trump’s July tariff announcement, South Africa had proposed a trade package. This included a “duty-free quota of 40,000 vehicles per year to be exported from South Africa” and “duty-free access for automotive components sourced locally for U.S. production.”
In 2024, South Africa’s automotive sector was a significant player, accounting for “64% of all AGOA trade with the U.S.,” generating “28.6 billion rand ($1.60 billion) in export revenue,” Naamsa stated. Mabasa emphasised that these tariffs “threaten thousands of jobs and risk economic devastation in communities reliant on the sector,” citing East London, a coastal city where the auto industry is central to the economy. He starkly warned, “If we cannot retain export markets like the U.S., we risk turning vibrant industrial hubs into ghost towns,” noting potential ripple effects across the entire automotive supply chain.
Mabasa added that while “export diversification is critical,” it “cannot happen overnight.” He also highlighted that “global competitors are already redirecting their exports into markets traditionally served by South Africa.” This growing pressure will compel South Africa-based automakers exporting to the U.S., including Mercedes-Benz, to “absorb rising costs, scale back production, and reconsider future investments,” Mabasa concluded.
