South Africa’s automotive industry lobby group warned that the country’s economy will be devastated by tariffs on exports to the US, which come into force on Aug. 1.
The country faces 30% tariffs on all exports, as well as a new 25% levy specific to auto exports, duties which pose a “serious threat” to the local carmaking industry. The US is South Africa’s second-largest export market, with automotives accounting for two-thirds of all trade under a preferential US-Africa trade agreement last year.
The concerns come as finance ministers from G20 countries arrive in South Africa this week to discuss mounting trade tensions, a global economic slowdown, and the White House’s threat to withdraw from multilateral organizations.
South African President Cyril Ramaphosa has looked to promote issues more pertinent to Africa including reworking the global financial system and addressing climate change costs. Notably absent, however, will be US Treasury Secretary Scott Bessent.
