US tariffs spark layoffs in South Africa’s auto sector as AGOA trade deal hangs in balance
South Africa’s automotive industry faces mounting challenges as new US tariffs on cars and parts trigger layoffs across the sector.A 25 percent tariff, imposed to protect American businesses, has already seen plant closures and rising unemployment in the Eastern Cape province. Workers fear further job losses as the African Growth Opportunity Act (AGOA), a 25-year-old trade deal granting duty-free access to the US market, nears expiry without confirmation of an extension.
Ninety percent of exports from some South African manufacturers depend on the US, leaving the industry in a precarious position amidst changing trade policies.
Al Jazeera’s Haru Mutasa reports from Gqeberha, South Africa.
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