US 25% Import Tariff

TRADE: INFORMATION ON HOW THEY'LL AFFECT SA INDUSTRY THIS WEEK

- Roy Cokayne

A better understanding about the impact on South Africa's automotive industry of the new US 25% import tariff on all automotive imports is expected later this week.

National Association of Automotive Component and Allied Manufacturers (Naacam) CEO Renai Moothilal says Naacam is concerned because preferential trade into the US market has been a bedrock of component production and added scale to domestic component production for a number of years.

Moothilal said with the Africa Growth and Opportunity Act (Agoa) in force, there had been an increasing rate of penetration into the US market.

SA benefits from duty-free access to the US market under Agoa.

In 2023, the US was SA's second-biggest automotive trading partner after Germany, with total trade between the two countries valued at R56.75 billion.

This comprised R27.94 billion in exports from SA to the US and R28.8 billion in imports from the US.

Moothilal said the US tariffs were imposed under Section 232 of the US Trade Expansion Act, which effectively meant they will override the Agoa agreement.

"What we are still waiting for is a final list of whether it's all components or what components will be covered by this Section 232.

"The initial indication is that from 3 April that will be open for comment for a month so we should have better clarity later this week.