South Africa Proposes Up to 50% Tariffs on Chinese and Indian Cars to Shield Local Industry

South Africa is planning to impose import tariffs of up to 50% on vehicles manufactured in China and India to counter the surge in imports that has severely impacted its domestic automotive industry. According to the South African International Trade Administration Commission, the current import tariff on complete vehicles stands at approximately 25%, while the World Trade Organization (WTO) permits a maximum rate of 50%. In 2024, China and India accounted for 53% and 22%, respectively, of South Africa’s total vehicle imports, with imports from these two countries surging by 368% and 135% over the past four years. Low-priced imported vehicles, particularly in the entry-level segment, have significantly squeezed profit margins for local automakers. The Department of Trade, Industry and Competition is currently evaluating adjustments to tariff and excise duty policies and reviewing the rebate mechanism. Meanwhile, the United States has already imposed an additional 30% tariff on South African exports, and uncertainty surrounding the future of the African Growth and Opportunity Act (AGOA) is further pressuring South Africa’s automotive exports.