US President Donald Trump’s 30% tariff on South African imports has dealt a blow to the African Growth and Opportunity Act (AGOA), which is set to expire in September 2025. AGOA allows eligible sub-Saharan African countries duty-free access to the US market for thousands of products, aiming to boost economic growth through exports.

In 2024, South Africa accounted for nearly half ($3.8-billion) of the $7.9-billion in US imports under AGOA. The country’s top export under the agreement is transport equipment. That year, South Africa exported 24,681 vehicles to the United States, according to the Automotive Business Council (Naamsa).

“The US tariffs directly threaten thousands of jobs in our sector, disrupt hard-won industrial capabilities, and risk devastating communities such as East London, where the auto sector forms the economic heartbeat of the town,” said Naamsa CEO Mikel Mabasa. “If we cannot retain export markets like the US, we risk turning vibrant industrial hubs into ghost towns.”

South Africa’s automotive industry supports over 110,000 formal sector jobs, according to Naamsa.