South Africa’s Vehicle Exports to the U.S. Plummet Amid Tariff Increases

• South Africa’s vehicle exports to the U.S. have fallen dramatically in 2025.
• New U.S. import tariffs have triggered significant declines in trade volume.
• The automotive sector is crucial for South Africa’s economy and jobs.
• Tariffs imposed by Trump pose risks to local industrial hubs reliant on exports.
• naamsa reports an 80% decline in exports during April and May.
• Large automakers like Mercedes-Benz may need to reassess their operations.

South Africa’s Vehicle Exports Experience a Major Decline

In a dramatic turn of events, South Africa’s vehicle exports to the United States have seen a staggering decline in 2025, shedding more than 80% since the implementation of steep import tariffs by the Trump administration. This sharp drop, particularly in months like April and May, is part of a worrying trend that threatens jobs across the automotive sector and industrial hubs reliant on these exports. The trade relationship between South Africa and the U.S. was once thriving, bolstered by the African Growth and Opportunity Act (AGOA), which facilitated duty-free access for South African goods, but this status quo is rapidly unraveling due to revised tariff policies.

Tariff Increases Threaten Automotive Jobs

As reported by the National Association of Automobile Manufacturers of South Africa (naamsa), the situation has worsened considerably with vehicle exports plummeting by 73% in just the first quarter when compared to the previous year. In April and May specifically, the declines reached alarming figures, marking drops of 80% and 85% respectively. This significant downturn is compounded by a comprehensive tariff increase in which President Trump implemented a 25% levy on South African vehicles in April, soon followed by a broader 30% tariff set to take effect in August on all vehicle imports. Such drastic tariff hikes are expected to further decimate the automotive market and potentially harm employment rates in the industry.

Manufacturers Face Uncertain Future

Furthermore, the automotive sector accounts for a significant 64% of South Africa’s total trade with the U.S. through AGOA, generating around 28.6 billion rand ($1.6 billion) in export revenue in 2024, according to naamsa. The resultant economic fallout is already palpable, particularly in areas like East London, where automotive production serves as the backbone of the local economy. With manufacturers such as Mercedes-Benz relying heavily on U.S. exports, the pressure is on them to respond to these evolving trade barriers by either pulling back production or rethinking investment strategies for the future. However, naamsa’s CEO Mikel Mabasa cautioned that while the need for export diversification is vital, such transitions cannot happen overnight, leading to a sense of urgency in the South African automotive landscape as international competitors are already stepping in to seize market opportunities.

The 2025 plunge in vehicle exports from South Africa to the U.S. highlights a precarious situation for the automotive industry amid stiff tariffs introduced by the Trump administration. With reductions hitting record lows and nearing a collapse of trade relations that had benefited South Africa under AGOA, job losses and economic ramifications loom large. As manufacturers face tough decisions moving forward in light of these trade restrictions, the overall outlook remains fraught with uncertainty, risking long-standing economic infrastructures that rely heavily on automotive exports to the United States.