South Africa Weighs Steep Tariffs On Vehicles From China And India

Market Movement  
Vehicles from China and India accounted for 53% and 22% of South Africa’s total imports in 2024. Imports from China surged 368% over the past four years, while shipments from India rose 135%. The influx of lower-priced cars has intensified competition, particularly in the entry-level segment, squeezing domestic producers.  

Policy Review  
The Department of Trade, Industry and Competition is conducting an internal review to assess tariff adjustments. Officials believe higher duties could help protect local jobs and manufacturing capacity. However, the proposal raises concerns about potential price hikes for consumers and possible trade tensions with two of the world’s largest auto exporters.  

Industry Implications  
Analysts suggest the move could reshape South Africa’s automotive market. While tariffs may provide relief for local manufacturers, they could also limit consumer access to affordable vehicles. The decision will be closely watched as part of a wider global trend toward protectionism in the auto industry.  

Key Highlights  

• Tariffs may rise to 50% from current 25%  
• China accounts for 53% of imports, India 22%  
• Imports surged 368% from China, 135% from India  
• Policy review aims to protect local manufacturing  
• Concerns over consumer costs and trade tensions  

Conclusion  
South Africa’s tariff deliberations highlight the growing tension between protecting domestic industries and maintaining affordable access to vehicles. The outcome will play a critical role in shaping the country’s auto sector and its trade relations with China and India.  

Sources: Bloomberg, Moneyweb, Economic Times