South Africa has requested immediate discussions with the United States following the announcement of a 25% tariff on automobile imports that could deliver a severe blow to the country’s vital automotive sector.

Trade Minister Parks Tau confirmed his department is pursuing urgent meetings with US counterparts to address concerns about the economic consequences of the new policy.

“Automobile exports from South Africa accounted for 64% of our AGOA exports in 2024 and are a critical component of the preferential programme,” Tau said. “We will engage with US authorities to discuss these developments, given the potential negative effect on the South African economy.”

The US represents South Africa’s second-largest trading partner and fifth-largest vehicle export market, with automotive and parts exports exceeding $2 billion (R37.05 billion).

Set to take effect on April 2, 2025, the tariffs will impact countries benefiting from the African Growth and Opportunity Act (AGOA), which currently provides duty-free access for over 1,800 products from eligible sub-Saharan African nations.

Tau emphasized that South African automobile exports constitute just 0.99% of total US car imports and 0.27% of auto parts imports, arguing they pose no significant threat to America’s domestic automotive industry.

Trade experts warn that exclusion from AGOA could jeopardize thousands of jobs across South Africa’s automotive, agricultural, and manufacturing sectors.

The Department of Trade, Industry, and Competition has also announced plans to meet with local automotive industry leaders to evaluate the broader implications and develop strategies to minimize potential economic damage.

Analysts note that this development comes at a particularly challenging time for South Africa’s economy, which has been struggling with slow growth, high unemployment, and recent currency volatility.