South Africa’s Vehicle Exports to U.S. Plunge Over 80% Amid Trade Tariffs

• South Africa’s vehicle exports to the U.S. fell over 80% in 2025.
• New tariffs imposed by the Trump administration are impacting trade severely.
• Job security is at risk for South African workers in the automotive sector.
• The U.S. tariffs particularly affect South Africa’s industrial hubs reliant on exports.
• Naamsa warns of disruptions across South Africa’s automotive value chain.

Significant Decline in Vehicle Exports to U.S.

South Africa’s vehicle exports to the United States experienced a staggering decline in 2025, dropping sharply by over 80% amid a wave of newly implemented U.S. import tariffs. This colossal downturn, taking its most drastic hits in April and May, has created major concerns regarding job security and the viability of key industrial hubs in South Africa. Previously, the U.S. was a significant trade ally under the African Growth and Opportunity Act (AGOA), but the recent tariff increases are causing severe disruptions to these trade relations.

Jobs and Industrial Hubs Under Threat

According to naamsa, the South African automotive industry body, the slumping export numbers pose a serious threat to jobs and operational stability within the sector. For instance, vehicle exports to the U.S. fell by an alarming 73% in Q1 2025 compared to the same time period last year. The losses intensified dramatically, with April and May witnessing drops of around 80% and 85%, as the industry struggles to adapt to the hefty import fees imposed by the Trump administration.

Automakers Navigating New Challenges

The cause of this crisis stems from a 25% tariff placed on South African vehicles in April, later broadened in scope to include various automotive components. Just recently, the White House announced even stiffer tariffs, raising the figure to 30% on all vehicle imports starting from August 1. The automotive sector, which accounted for an impressive 64% of South Africa’s total AGOA trade with the U.S. in 2024, bringing in roughly R28.6 billion ($1.6 billion) in export income, now finds itself in perilous waters. Regions like East London are already feeling the impact—auto production is critical to its economic framework.

In summary, the steep decline in South Africa’s vehicle exports to the U.S. has raised alarm bells over job security and economic stability within the automotive industry. The escalating tariffs imposed by the Trump administration are eroding previously beneficial trade agreements like AGOA. As automakers reassess their strategies in light of these changes, there is significant uncertainty about the future of South Africa’s automotive sector and its workers.