Job loss fears mount as SA's auto exports to U.S drops 87% following Trump's tariffs
Trump recently imposed 30% tariffs on South Africa's automotive export industry.
US President Donald Trump signs an executive order in the Oval Office of the White House in Washington, DC, on January 20, 2025. Picture: Jim Watson/AFP
Stephen Grootes speaks to Dr. Paulina Mamogobo, chief economist at Automotive Business Council about the potential devastating impact of U.S President Donald Trump's 30% tariffs on South Africa's automotive export industry.
Listen to the interview in the audio player below.
South Africa's vehicle exports to the United States (U.S) has plummeted by more than 87% since U.S president imposed a 25% tariff on all vehicle imports to the country in April this year.
The new 30% tariff on automotive exports to the U.S is due to take effect from 1 August.
The Automotive Business Council is now warning that U.S president Donald Trump's new 30% tariff on SA's automotive export industry could cripple the local sector, leading to thousands of job losses.
Speaking to Stephen Grootes on The Money Show, Dr. Paulina Mamogobo, chief economist at The Automotive Business Council says the council has issued a stark warning that towns where factories are located, particularly in the Eastern Cape will be impacted.
"The U.S has remained South Africa's key export destination. When we look at the period between 2008 and 2013, it was actually our number one export market in terms of vehicles."
- Paulina Mamogobo, chief economist - Automotive Business Council
"North America is what held up our export performance. So you realise we've exported over R24,68billion in 2024, and that becomes significant export revenue."
- Paulina Mamogobo, chief economist - Automotive Business Council
"We of course continue to be optimistic, but these tariffs will shake our industry domestically."
- Paulina Mamogobo, chief economist - Automotive Business Council
Scroll to the top of the article to listen to the full interview.