South Africa Requests Meeting With U.S. Regarding Auto Tariffs

South Africa seeks discussions with U.S. officials regarding proposed auto tariffs that threaten its $2 billion car export market under AGOA. Trade Minister Parks Tau noted that car exports constitute a key component of South Africa’s AGOA benefits, while NAAMSA is assessing the tariffs’ impacts on the automotive sector.

South Africa intends to request a meeting with U.S. authorities concerning auto tariffs, as stated by Trade Minister Parks Tau. This initiative arises due to concerns regarding the proposed 25% tariff on automobile imports, revealing the significance of the preferential trade status South Africa holds with the United States.

South Africa’s automobile exports to the U.S., valued at over $2 billion, stand at risk from these tariffs. The Section 232 tariffs, announced by President Donald Trump, are expected to affect imports from nations benefiting under the African Growth and Opportunity Act (AGOA), including South Africa.

Tau highlighted that automobile exports represented 64% of South Africa’s exports under AGOA in 2024, emphasizing their critical role in the preferential program. Although South Africa’s car exports currently receive duty-free treatment under AGOA, U.S. imports to South Africa also benefit from incentives through the Automotive Production Development Programme.

Notably, South African automobile exports make up only a small fraction of total U.S. vehicle imports, accounting for 0.99% and 0.27% of auto parts, indicating that they do not threaten the U.S. industry. In light of these developments, Tau confirmed that South Africa would actively pursue discussions with U.S. authorities to mitigate potential economic repercussions.

The National Association of Automobile Manufacturers of South Africa (NAAMSA) is currently evaluating the anticipated impacts of these tariffs and engaging with industry members and stakeholders, while brands such as Mercedes-Benz and BMW are among those exported to the U.S.

In summary, South Africa’s proposal for a dialogue with U.S. authorities focuses on addressing the impending auto tariffs that could adversely affect its economy. The country relies heavily on automobile exports, facilitated by AGOA, and emphasizes that these exports pose no significant threat to the U.S. industry. The ongoing cooperation with industry representatives underlines South Africa’s proactive approach to mitigating potential economic fallout.

Original Source: www.usnews.com