How US Politics Could Hit Your Pocket in South Africa

By Evolution Finance at 11 Aug 2025, 09:06 AM

When we hear about political decisions in America, it’s easy to think they’re oceans away from our daily lives. But recent moves by the U.S. government - especially around trade tariffs - could have a direct impact on South African jobs, industries, and even your household budget.

What’s Happening?

The U.S. has announced steep tariffs (extra taxes) on goods imported from South Africa, including vehicles and auto parts. These tariffs make South African products more expensive for American buyers, which could mean fewer exports from our side.

Why It Matters to SA

South Africa’s automotive industry is a major player in our economy:

It contributes over 22% of our manufacturing output.

Supports more than 110,000 formal jobs.

Generates billions in export revenue, especially through trade with the U.S.

But with these new tariffs:

Vehicle exports to the U.S. dropped by over 70% in early 2025.

Plants like Mercedes-Benz have paused production, raising fears of downsizing.

Communities built around these industries face job losses and economic strain.

How It Affects Everyday South Africans

Job losses in manufacturing ripple into logistics, suppliers, and retail.

Reduced income means less spending power, which affects local businesses.