Image Source: SA Jewish Report
World – South Africa is sending yet another delegation to the White House as fears mount that thousands of jobs could be lost under the weight of new American tariffs.
Deputy President Paul Mashatile confirmed that President Cyril Ramaphosa will once again dispatch a team to Washington to address the 30% duty imposed by the United States on South African goods.
The tariff, which took effect on August 8, 2025, has created new uncertainty for the automotive sector. Industry leaders say the measures could undo years of growth and compromise South Africa’s competitiveness.
“We will continue engaging with the USA to identify practical solutions. The President will be sending the delegation once again to the White House to engage with the US administration on this matter,” Mashatile said.
The Deputy President made his remarks at the NAACAM Show 2025 in Gqeberha, where the automotive component industry gathered to showcase its role in exports and employment.
The event came at a critical time for the sector, which is facing external trade shocks and internal pressures.
Mashatile highlighted the African Continental Free Trade Area (AfCFTA) as a means of enhancing regional integration and investment. He emphasised that while African markets are crucial, South Africa remains reliant on international partners.
“However, this does not suggest that we do not need other nations as trading partners. We believe in diversifying our investments and engaging in trade with several partners.”
Trade Dispute Threatens Entire Industry
The stand-off with Washington has placed the future of one of South Africa’s most essential industries in jeopardy. Supply chains, exports and local operations all face disruption if talks fail.
Mashatile stated that the effects would be felt throughout the sector, from small suppliers to large manufacturers. He warned that the entire value chain was at risk without an agreement.
“I must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House.”
Concerns Over Global Competitiveness Rise
Competitiveness in the United States market is also under threat. Higher landed costs will make South African goods less attractive compared to rivals with preferential access.
Mashatile said this imbalance would significantly impact the industry. Without tariff relief, South African manufacturers would struggle to compete on equal terms.
“Because of this, they would be unable to compete with goods from nations that have continued preferential or zero-duty access, such as those in the USMCA.”
“Overall, the imposed tariffs threaten to disrupt well-established trade flows and weaken the global competitiveness of South Africa’s automotive manufacturing ecosystem.”
Industry Already Under Severe Pressure
The industry was already struggling before the tariffs. Reduced production volumes and wider economic pressures had placed a strain on companies and workers alike.
NAACAM reported that 12 companies had closed in the past two years, leading to more than 4,000 job losses. The closures highlighted the vulnerability of communities that depend on the automotive supply chain.
The automotive industry employs approximately 115,000 people, with over 80,000 in the component sector. It contributes 22.6% of manufacturing output and 5.2% of GDP, making it one of the pillars of the economy.
“We must never allow the loss of these gains because of external and internal pressures. I say this with concern because the employment levels in the sector have been under strain due to ongoing economic pressures and reduced production volumes.”
Mashatile said these gains could not be allowed to slip away. He called for cooperation between government and industry to protect jobs, increase localisation and prepare for the transition to electric vehicles.
“Despite the setbacks, South Africa remains resilient and capable of adapting to change. We must continue working together to safeguard jobs, improve competitiveness, and prepare for the future of the industry.”
