South Africa seeks to meet us on automotive prices

Johannesburg (Reuters) – South Africa will ask for a meeting with the American authorities on automotive prices, the Minister of Commerce, the Minister of Commerce, said on Tuesday, noting that samples are a concern because the country has preferential commercial status with the United States.

South Africa, whose exports of vehicles and parts in the United States are estimated at more than 2 billion dollars, could take a severe blow from a planned price of 25% on automotive imports unveiled last week by President Donald Trump.

TAU said in a statement that American prices in article 232 should apply to imports of cars and automotive parts from countries, including South Africa, which benefit from the US growth and opportunity (AGOA).

AGOA provides franchise access to the US market for most agricultural and manufactured products, such as cars and parts exported by eligible African countries.

“Automobile exports from South Africa represented 64% of exports from South Africa under AGOA in 2024, and are therefore an important component of products currently benefiting from the preferential program,” said Tau.

While auto exports from South Africa to the United States is in the franchise of rights below OGIA, American imports in South Africa also benefit from discounts as part of the country’s automotive production development program.

Automobile exports from South Africa represent only 0.99% of total vehicle imports and 0.27% of automotive parts “and therefore do not constitute a threat to American industry,” added Tau.

“South Africa will seek a meeting with the American authorities to discuss these developments, given the potential negative effect on the South African economy,” said Tau.

The organization representative of the automotive industry in South Africa, Naamsa, said that it actively evaluated the potential impact of these prices and that it engaged with its members and other key stakeholders.

Among the car brands that exports in South Africa to the United States are Mercedes-Benz and BMW.

(Report by Nqobile Dludla; ​​edition by Sharon Singleton)