South Africa’s Deputy President Warns of Economic Setback
(MENAFN) South Africa’s Deputy President Paul Mashatile has cautioned that the nation’s automotive industry could suffer severe economic consequences if a mutually beneficial trade pact with the United States is not secured.
His warning was delivered during the opening session of the P20 Women’s Parliament in Cape Town on Thursday.
Mashatile emphasized that the proposed 30% tariff on automotive exports from South Africa to the U.S. poses a serious threat to the established trade dynamics.
This move could weaken the sector's global competitiveness and endanger numerous jobs throughout the country.
“We 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,” Mashatile asserted.
He further explained that South African suppliers who work with local original equipment manufacturers (OEMs) and rely on exports to the U.S. could be forced to scale back production.
Such a downturn would negatively affect planning, employment levels, and investment within the sector.
“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,” he noted.
Mashatile’s remarks coincide with South Africa’s current role as chair of the G20 under the banner of “Solidarity, Equality, Sustainability.”
He underlined the importance of the automotive industry—being deeply embedded in the global supply chain—playing an active role in broader dialogues surrounding economic durability, sustainable development, and institutional reforms.
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