JOHANNESBURG (Reuters) – South Africa will search a gathering with U.S. government on auto price lists, Business Minister Parks Tau mentioned on Tuesday, noting the levies are a priority as the rustic has preferential business standing with the USA. South Africa, whose exports of cars and portions into the USA is estimated at over $2 billion, may just take a critical hit from a deliberate tariff of 25% on car imports unveiled closing week through U.S. President Donald Trump. Tau mentioned in a commentary that the U.S. Phase 232 price lists are anticipated to use to imports of automobiles and automotive portions from nations, together with South Africa, that have the benefit of the U.S. African Enlargement and Alternative Act (AGOA). AGOA supplies duty-free get entry to to the U.S. marketplace for maximum agricultural and manufactured merchandise, equivalent to automobiles and portions exported through eligible African nations. “Automotive exports from South Africa accounted for 64% of South Africa’s exports beneath AGOA in 2024, and are due to this fact a major factor of goods lately reaping rewards beneath the preferential programme,” Tau mentioned. Whilst South Africa’s automotive exports to the USA pass duty-free beneath AGOA, U.S. imports into South Africa additionally revel in rebates beneath the rustic’s Automobile Manufacturing Building Programme. South Africa’s exports of cars accounts for best 0.99% of U.S. general automobile imports and nil.27% of vehicle portions “and thus don’t represent a danger to U.S. trade”, Tau added. “South Africa will search a gathering with the USA government to speak about those tendencies, given the possible adverse impact at the South African economic system,” Tau mentioned. The consultant frame of South Africa’s automobile trade, NAAMSA has mentioned that it used to be actively assessing the possible affect of those price lists and that it used to be enticing with its contributors and different key stakeholders. A number of the automotive manufacturers that South Africa exports to the U.S. are Mercedes-Benz and BMW. (Reporting through Nqobile Dludla; Enhancing through Sharon Singleton)
