South Africa's Auto Industry Faces Tariff Troubles with U.S.

South Africa is seeking discussions with U.S. authorities over impending 25% auto tariffs that could significantly impact its economy. The tariffs affect South African vehicle exports, which constitute a major portion of its trade under AGOA, despite minimal threat to U.S. auto industry dominance.

South Africa is calling for urgent talks with U.S. officials following the announcement of a proposed 25% tariff on car imports, a move that threatens the nation's economy. Trade Minister Parks Tau emphasized the importance of dialogues as the tariffs would hit over $2 billion worth of auto exports to the U.S.

The U.S. Section 232 tariffs would impact countries benefiting from the African Growth and Opportunity Act (AGOA), including South Africa. Under AGOA, South African vehicles enjoy duty-free access to the U.S., helping the sector thrive.

Despite accounting for less than 1% of U.S. imports, Tau urged that vehicle shipments from South Africa pose no threat to American manufacturers. The nation's automotive body, NAAMSA, is assessing potential impacts and liaising with brands like Mercedes-Benz and BMW, which export from South Africa to America.

(With inputs from agencies.)