Tariffs on SA exports endanger citrus auto, and wine sectors
Trump import tariffs threaten 100,000 South African jobs
U.S. President Donald Trump’s new tariffs on South African imports may result in the loss of around 100,000 jobs, with agriculture and the automotive sector expected to be hardest hit, Reserve Bank Governor Lesetja Kganyago said on Wednesday.
Kganyago noted that the 30% import tariff, set to take effect on August 1, could cause severe damage to specific industries. He cited alarming data showing that South Africa's vehicle exports to the U.S. had already dropped by more than 80% since April, when the Trump administration imposed auto import duties.
The impact on agriculture may be devastating, as the sector employs many low-skilled workers. Farming organizations have also warned about the harmful effects of tariffs on citrus, macadamia nuts, grapes, wine, fruit juices, and ostrich leather exports.
In the citrus industry alone, tariffs have placed 35,000 jobs at risk and threaten to devastate towns like Citrusdal in the Western Cape, which heavily depend on exports to the U.S.
Mercedes may exit South Africa over high tariffs
The National Association of Automobile Manufacturers of South Africa (Naamsa) has also raised concern, saying that the export duties threaten thousands of automotive jobs, undermine industrial capacity, and could have dire consequences for regions like East London, where the car industry is central to the economy.
"Since the enactment of the African Growth and Opportunity Act (AGOA), the automotive sector has significantly benefited from bilateral trade and investment. In 2024, automotive accounted for 64% of SA–U.S. trade under AGOA, generating R28.6 billion in export revenue, with 24,681 vehicles shipped to the U.S.," said Naamsa CEO Mikel Mabasa.
South Africa's automotive industry represents 22.6% of the country’s total manufacturing output and directly supports 110,000 formal-sector jobs.
Mercedes-Benz is most at risk, as it exports 90% of the vehicles produced in East London to the U.S. The company may consider pulling out of South Africa due to the tariff changes.
Naamsa hopes that a proposal allowing 40,000 vehicles to be exported duty-free to the U.S. will be approved, as the current tariff structure would have catastrophic effects on the manufacturing sector and the Eastern Cape province as a whole.
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