Automotive Business Council concerned about Trump’s tariffs

The Automotive Business Council (Naamsa) has expressed concern over the recent announcement by US President Donald Trump introducing additional tariffs on all imported products under what has been termed ‘Liberation Day’ trade measures.

Mikel Mabasa, CEO of Naamsa, says the announcement of a 30% tariff on all South African products exported to the US is deeply disappointing and could potentially deepen the already strained diplomatic relations between the two nations.

He says vehicles produced outside the US will face a punitive 25% tariff immediately and other automotive products are now also affected.

“While we hope the South African government will activate all available diplomatic channels with the Trump administration, these recent announcements are yet another challenge to a sector already grappling with multiple headwinds.”

According to Mabasa, manufacturers cannot absorb the proposed tariff costs, resulting in additional costs for US consumers and a reduced choice of South African-produced brands.

“Urgent trade discussions must be initiated and prioritised and this is why we urge the South African government to continue negotiating and delivering solutions that support job creation, consumer demand and economic growth.”

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Trump tariffs threaten to disrupt SA automotive exports

He warns that these tariff decisions, seen as part of a broader shift toward reciprocal tariffs, threatens to disrupt South Africa’s automotive exports and undermine our longstanding trade relationship with the US.

“The US is the third-largest destination for South African automotive exports, with approximately R35 billion worth of vehicles shipped in 2024, accounting for 6.5% of total vehicle exports in 2024. The proposed 25% tariff increase will severely impact local manufacturers operating in South Africa, including BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen that produce vehicles for global markets, including the US.”

Speaking at the sidelines of the Gauteng Investment Conference held in Johannesburg today, Mabasa also warned that the US move could have serious implications for jobs and investment in South Africa’s automotive sector.

“The US decision to impose these tariffs undermines existing trade agreements and the principles of a fair, rules-based trading system. The South African auto industry contributes significantly to economic development, employment and industrialisation and these tariffs could undermine our progress.”

However, he said Naamsa would not pre-empt how this will impact the renewal engagements on the African Growth and Opportunity Act (Agoa) at this time.

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Government urged to talk to US about Trump tariffs

“We would like to urge the South African government to engage with the US administration to urgently seek clarity on Agoa’s future and ensure that South Africa’s automotive sector is not unfairly penalised under these new trade measures.

“The South African automotive industry remains committed to fair and transparent global trade and will continue advocating for policies that support industrial growth and job creation.”

Mabasa also confirmed that Naamsa will attend the council meeting of the International Organisation of Motor Vehicle Manufacturers next week, hosted by the US in Washington, DC.

“We intend to use this opportunity to lobby and advocate for South African positions, highlighting how the current policy postures of the US administration will hinder the progress made in the development of the auto sector in South Africa.”