naamsa | The Automotive Business Council says it is “actively assessing” the potential impact of the 25% tariff imposed on vehicles and certain vehicle parts imported into the US announced by President Donald Trump this week.

The industry body says South Africa benefits from duty-free access to the US market under the African Growth and Opportunity Act (Agoa).

“We are currently engaging with our members and other key stakeholders, including government authorities and trade partners, to determine whether Agoa preferences remain unaffected by the latest proclamation,” says naamsa.

It adds that the South African automotive industry has built a strong export relationship with the US, particularly in the supply of light vehicles and automotive components.

“Any potential disruption to trade flows will require close collaboration between industry and government to ensure the continued competitiveness of South Africa as a global automotive manufacturing hub.”

naamsa says it will continue monitoring developments while engaging with US and South African trade authorities.

“We will provide further updates as more clarity emerges in the coming days.”

The US was South Africa’s sixth biggest export market for light vehicles in 2023, with a volume of 19 590 units. Number one was Germany, at 85 776 units, followed by the UK, at 80 550 units.

As a total automotive export market, the US was South Africa’s third biggest market by value in 2023, at R28-billion. Number one was Germany, at R83-billion.

South Africa largely exports German premium cars to the US, such as the BMW X3.