South Africa's Automotive Sector Faces Job Losses from US Tariffs

The proposed 25% increase in U.S. tariffs on automotive imports is causing significant concern for South Africa's automotive industry, particularly in the Eastern Cape, where the sector relies heavily on exports to the U.S., its second-largest trading partner. Denise van Huyssteen, CEO of the Nelson Mandela Bay Business Chamber, highlighted the potential job losses and the broader impact on the supply chain, as South Africa represents only 0.6% of global vehicle manufacturing. Automotive manufacturers like BMW and Ford, which have substantial operations in South Africa, may face challenges in maintaining global competitiveness and could reconsider their production strategies due to these tariffs. Furthermore, the tariffs could disrupt production of vehicles like the Ford Ranger, which is primarily ordered from South Africa. This situation threatens not only jobs but also the economic contribution of the automotive sector, which accounts for about 5% of South Africa's economy. The country is now urged to adapt strategically to navigate these challenges while focusing on industrial growth and sustainability.