South Africa’s vehicle exports to the United States have plummeted in 2025, with sharp declines in April and May.
- South Africa’s vehicle exports to the United States dropped significantly in 2025 due to new U.S. import tariffs.
- The decline threatens South African automotive jobs and industrial hubs dependent on exports.
- The U.S., previously a major trade partner under AGOA, escalated tariffs, impacting trade volume severely.
South Africa’s vehicle exports to the United States have plummeted in 2025, with sharp declines in April and May following the introduction of steep import tariffs by U.S. President Donald Trump.
According to industry body naamsa, the drop poses a serious threat to jobs and industrial hubs that depend on the sector.
The U.S., South Africa’s second-largest trading partner and a key destination for domestically manufactured vehicles, has historically offered duty-free access through the African Growth and Opportunity Act (AGOA). That preferential access is now being eroded by Trump’s escalating trade measures, Reuters reported.
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Auto exports to the U.S. fell by 73% in the first quarter of 2025 compared to the same period a year earlier. The situation worsened in April and May, with declines of 80% and 85%, respectively, naamsa said.
Naamsa CEO Mikel Mabasa, warns of widespread disruption across South Africa’s automotive value chain.
Tariffs hike
The dramatic fall in exports comes after Trump imposed a 25% tariff on South African vehicles in April, which was later expanded in May to cover automotive components.
Earlier this month, the White House announced a broader wave of new tariffs on more than a dozen countries, including South Africa, which now faces a 30% tariff on all vehicle imports starting August 1.
Before this latest tariff escalation, South Africa had attempted to negotiate a new trade arrangement with the U.S., proposing a duty-free quota of 40,000 vehicles per year and continued tariff-free access for South African-made auto parts used in U.S. manufacturing.
Jobs and investment at risk
The automotive sector is one of the largest beneficiaries of AGOA, accounting for 64% of South Africa’s total AGOA trade with the U.S. in 2024. It generated 28.6 billion rand ($1.6 billion) in export revenue that year, naamsa said.
The fallout is already being felt in regions like East London, a coastal manufacturing hub where auto production is central to the local economy.
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Automakers reassess operations
Automakers with a strong South African presence, such as Mercedes-Benz, which exports from South Africa to the U.S., may be forced to absorb rising costs, scale back production, or reconsider future investments, Mabasa warned.
While export diversification is essential, it won’t happen overnight, he added. Global competitors are already seizing the opportunity to capture market share in regions where South Africa is now being priced out.
