South Africa’s vehicle exports to the United States have dropped sharply in 2025, triggering alarm across the country’s automotive industry as steep new tariffs introduced by President Donald Trump take hold.
According to industry body naamsa, auto exports to the US—South Africa’s second-largest trading partner—fell by 73% in Q1 2025 compared to the same period last year. The slump worsened in April and May, with monthly drops of 80% and 85% respectively. The decline threatens thousands of jobs in key industrial hubs like East London and Pretoria that rely heavily on the sector’s link to US markets.
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For years, South Africa has enjoyed preferential access under the African Growth and Opportunity Act (AGOA), which provides duty-free entry for certain exports, including vehicles. But that advantage is now evaporating as Trump’s administration imposes protectionist measures. A 25% tariff on South African vehicles took effect in April, later expanded to include auto parts in May. This month, the White House announced an even broader wave of new tariffs, raising the duty to 30% on all vehicle imports from South Africa starting August 1.
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Naamsa CEO Mikel Mabasa warned that the tariffs put South Africa’s entire automotive value chain at risk, jeopardising production, supply chains and export-driven employment. In 2024, vehicle exports to the US alone accounted for 64% of South Africa’s total AGOA trade, generating over $1.6 billion (28.6 billion rand) in revenue.
Before the tariff escalation, Pretoria had tried to negotiate a quota of 40,000 duty-free vehicles and continued tariff-free access for parts used in US manufacturing, but talks have so far stalled.
Industry groups are calling for urgent diplomatic solutions to safeguard one of the country’s largest export sectors and protect communities built around auto manufacturing.
