SA automotive industry 'taking stock' after US announces 25% tariff on all imported vehicles

702's John Perlman talks to Mikel Mabasa, CEO of naamsa - South Africa's Automotive Business Council.

Countries around the world are reacting to the latest salvo in Donald Trump's trade war, after the US announced plans to impose a 25% tariff on all vehicle imports.

What does it mean for the industry and related jobs in South Africa?

John Perlman speaks to Mikel Mabasa, CEO of naamsa - South Africa's Automotive Business Council.

Mabasa points out that South Africa not only exports finished automobiles, but also components for these vehicles.

The US administration's announcement is still fresh, and the local automotive industry is still taking stock to understand the implications better, he says.

"We're also looking at the issue of components... because this law affects not only those vehicles that were completely built in SA but also specific components, because as we send vehicles to the US, they'll need certain parts produced here in order to be able to service those vehicles."

Mikel Mabasa, CEO - naamsa

South Africa's vehicle exports to the US in 2024 was sitting at around 11.6% of our overall exports to that country, Mabasa says.

He notes that lower sales due to higher prices in the US would affect not only the thousands of assembly workers in SA, but all those people working in the related value chain.

And, while we still have some protection under the The African Growth and Opportunity Act (AGOA) this is up for review in September by a US administration that is increasingly hostile to South Africa.

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