Trump tariffs threaten South Africa's auto industry ahead of AGOA renewal

South Africa's auto industry, which exports vehicles worth approximately R35 billion annually to the United States, is facing uncertainty due to the potential lapse of the African Growth and Opportunity Act (AGOA) amid pressure from President Donald Trump. AGOA provides preferential trade access, meaning no tariffs on South African vehicles, and is crucial as vehicles constitute 22% of South Africa's exports to the U.S. If AGOA is not renewed by September 2025, industry leaders warn that it could lead to significant job losses—estimates suggest around 211,000 jobs are directly tied to the auto industry and its supply chain. Experts highlight that without AGOA, the U.S. market, being South Africa's third-largest export destination, could suffer greatly. Billy Tom, head of the National Association of Automobile Manufacturers, noted that the U.S. market has been growing and losing it would have a detrimental impact on the supplier base and the industry's survival in South Africa. The situation remains precarious as stakeholders await developments regarding AGOA's renewal.