South Africa’s car exports to the United States have plummeted in 2025, battered by U.S. import tariffs imposed under President Donald Trump.
Shipments dropped 73% in the first quarter year-on-year, then plunged more than 80% in April and May, industry body naamsa reported.
The decline follows a 25% U.S. duty on vehicles and parts introduced in April, which South Africa says blindsided its auto sector.
A further 30% tariff, set to take effect August 1, targets a dozen countries including South Africa, intensifying trade tensions.
The United States is South Africa’s second-largest trading partner and a crucial destination for its auto exports under the AGOA trade pact.
“This is not just a trade issue — it’s a socio-economic crisis in the making,” warned naamsa CEO Mikel Mabasa.
In 2024, the automotive sector made up 64% of all South African exports to the U.S. under AGOA, generating $1.6 billion in revenue.
Mabasa said thousands of jobs are at risk, particularly in towns like East London, where the auto industry underpins the local economy.
“If we cannot retain export markets like the U.S., we risk turning vibrant industrial hubs into ghost towns,” he cautioned.
South Africa had offered the U.S. a trade package, including a 40,000-vehicle duty-free quota and tariff-free auto parts, but it fell short.
Global rivals are already filling the void in U.S. markets once dominated by South African automakers, further complicating recovery efforts.
With no quick fix in sight, companies like Mercedes-Benz may face difficult choices — cutting production, shelving investment, or leaving entirely.
Mabasa stressed the need for export diversification but admitted it is “not something that can happen overnight.”
