South Africa Plans Auto Industry Incentives to Mitigate U.S. Tariffs

South Africa is exploring new incentives for automakers to counteract the effects of U.S. tariffs on auto imports, as highlighted by Trade, Industry and Competition Minister Parks Tau. The government is considering expanding the Automotive Production and Development Program (APDP), which provides tariff rebates and production-based incentives. The National Association of Automobile Manufacturers of South Africa has raised concerns that the 25% U.S. tariff could increase costs for American consumers and limit the variety of South African brands available in the U.S. market. Currently, the U.S. is the third-largest destination for South African automotive exports, valued at approximately 35 billion rand ($1.8 billion). Major automakers operating in South Africa, such as BMW, Ford, and Toyota, are expected to be significantly impacted by these tariffs. The government aims to develop a feasible strategy to mitigate these challenges across various sectors.