Mashatile warns of economic repercussions

DEPUTY President Paul Mashatile has warned of economic repercussions across South Africa's automotive value chain if an amicable trade agreement is not reached with the United States.

- HOPE NTANZI

Speaking at the opening of the P20 Women's Parliament in Cape Town yesterday, Mashatile said that the imposition of a 30% tariff on South African automotive exports to the US threatens to disrupt established trade flows, undermine competitiveness, and put thousands of jobs at risk.

“We must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House,” Mashatile said.

He noted that South African suppliers supporting domestic original equipment manufacturers (OEMs) that export to the US would likely face production cutbacks, putting pressure on planning, employment, and investment.