According to multiple South African media reports on July 16, Mercedes-Benz South Africa (MBSA) is reassessing operations at its East London plant as export-oriented industries face severe pressure from U.S. tariff hikes. The Acting Premier of the Eastern Cape expressed deep concern over the potential withdrawal of MBSA from the South African market.

The U.S. plans to impose a 30% tariff on certain South African exports starting August 1, 2025, dealing a significant blow to the country’s automotive sector. Data from the National Association of Automobile Manufacturers of South Africa (NAAMSA) shows that South Africa’s vehicle exports to the U.S. plummeted by 82% year-on-year in the first half of 2025, with the majority being C-Class models produced at MBSA’s East London facility.

This sharp decline has intensified speculation that MBSA may exit the South African market. In response, MBSA stated that it may need to “reassess its business plans” in the country. South African government officials have highlighted the volatility of the U.S. market and urged MBSA to explore new export destinations.