Vehicle exports from South Africa to the United States have collapsed in 2025, with steep drops in April and May following aggressive import tariffs imposed by U.S. President Donald Trump.
The sharp decline is raising serious concerns for jobs and local economies that rely heavily on the automotive sector, according to industry group naamsa.
The United States, South Africa’s second-largest trading partner and a key market for its locally manufactured vehicles, had long provided duty-free access under the African Growth and Opportunity Act (AGOA).
But that trade advantage is now being chipped away by Trump’s escalating tariff regime, Reuters reported.
Auto exports to the U.S. plunged by 73% in the first quarter of 2025 compared to the same period in 2024.
The situation worsened in the following months, with declines of 80% in April and 85% in May, naamsa reported.
Naamsa CEO Mikel Mabasa warned that the tariff measures are causing widespread disruption across South Africa’s automotive value chain.
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The sharp drop in exports began after a 25% tariff on South African vehicles was introduced in April.
By May, the tariffs were extended to cover automotive components as well.
Earlier this month, the White House announced even broader tariffs targeting more than a dozen countries, including South Africa, which now faces a 30% tariff on all vehicle imports to the U.S. starting August 1.
Before the latest wave of tariffs, South Africa had sought to negotiate a new trade deal with the U.S., proposing a duty-free quota of 40,000 vehicles annually and continued tariff-free access for auto parts made in South Africa and used in U.S. manufacturing.
The automotive industry is one of the top beneficiaries of AGOA, accounting for 64% of South Africa’s total AGOA-related trade with the U.S. in 2024.
That same year, the sector brought in 28.6 billion rand (about $1.6 billion) in export earnings, according to naamsa.
The impact is already being felt in key production zones like East London, where auto manufacturing plays a critical role in the local economy.
Automakers with major operations in South Africa, including Mercedes-Benz, which exports vehicles to the U.S. from South Africa, may be forced to absorb the extra costs, reduce output, or reconsider future investments, Mabasa said.
While expanding exports to new markets is necessary, Mabasa noted that such shifts won’t happen overnight.
He added that global competitors are already stepping in to fill the gap in markets where South African vehicles are now becoming too expensive due to tariffs.
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Image Credit: The Vaultz News
