On July 14, the National Association of Automobile Manufacturers of South Africa (NAAMSA) announced that it had received an official letter from U.S. President Donald Trump addressed to the South African government. According to the letter, the U.S. will unilaterally impose a 30% reciprocal trade tariff on South Africa. The announced tariff policy has already impacted bilateral trade.

In the first quarter of 2025, South Africa’s vehicle exports to the U.S. fell by 73%, with April and May seeing even steeper declines of 80% and 85%, respectively. Under the threat of these tariffs, South Africa faces reduced exports of vehicles and components, as well as diminished annual export revenue—both of which will be difficult to recover in the short term.

The tariffs are also putting pressure on the country’s automakers, which have contributed significantly to the development of South Africa’s automotive sector and invested heavily in localized production and export infrastructure.

The South African government is continuing diplomatic engagements with the U.S. and has submitted a framework agreement addressing American concerns—a move welcomed by NAAMSA. The association supports a fair, rules-based trade agreement between the two nations and is encouraged by preliminary discussions on a potential annual duty-free export quota of 40,000 vehicles for South Africa. This arrangement could help maintain the country’s presence in the U.S. automotive market.

NAAMSA remains committed to working closely with the South African government, providing data and insights to support negotiations, while urgently seeking new export markets. Additionally, the association has expressed concern over the impact of trade disruptions on communities, particularly in regions like East London where thousands of families depend on the automotive industry for their livelihoods.