Why Donald Trump's 30% tariff on SA exports could sink the local boat building industry
Boats are one of South Africa's big exports to the USA.
Small boats dock at the Hout Bay fishing harbour in Cape Town. Picture: Ashraf Hendricks/GroundUp
Stephen Grootes interviews Vanessa Davidson, executive head at the SA Boat Builders Exporters Export Council.
Listen to the interview in the audio player below.
When you think of the products South Africa exports to the U.S, you probably think of cars, fruit and wine.
It turns out though, that one of South Africa's big exports is also boats.
There's a growing boat industry centred around the Western Cape, where boats and other vessels are manufactured at much cheaper prices than our competitors.
But with the Trump administration slapping further tariffs on South African exports, the boat manufacturing sector in South Africa could be in trouble.
Trump's 30% tariff on South African exports is due to come into effect on 1 August.
Speaking to Stephen Grootes on The Money Show, Vanessa Davidson, executive head at the SA Boat Builders Exporters Export Council says a 30% tariff would be significantly impactful on the sector.
"At the moment, the whole picture is very uncertain...it's a moving target every single day. We don't know what we're going to wake up to the next day."
- Vanessa Davidson, executive head - SA Boat Builders Exporters Export Council
"Where does that 30 or 40% tariff get absorbed? Manufacturers can absorb a certain amount, suppliers can absorb a certain amount. The customer is going to have to absorb a certain amount. And what's unique in the boat building industry, we're an interdependent, globally based industry. 40 to 60% of components that go into South African built catamarans actually come from the U.S."
- Vanessa Davidson, executive head - SA Boat Builders Exporters Export Council
"We can't look at ourselves as distinctly one side of the Atlantic, and the other side of the Atlantic. We have this intrinsic connection that actually benefits both our economies at the same time."
- Vanessa Davidson, executive head - SA Boat Builders Exporters Export Council
Scroll to the top of the article to listen to the full interview.