South Africa may take legal route if Trump goes ahead with tariffs on automotive parts import

During bilateral meetings in Washington DC with US Trade Representative Ambassador Robert Lighthizer, US Secretary of Commerce Wilbur Ross and other important members, South Africa’s Trade and Industry Minister Rob Davies said that SA's steel and aluminium exports to the United States does not pose any threat to US national security.

He said that South Africa’s exports of aluminium to the US accounted for about 1.6% of total US aluminium imports. South Africa has been supplying specialised aluminium sheet, coil, and plate for the automotive, battery, and aerospace industries in the US.

Under such condition, “it is clear that SA does not pose a threat to US national security and the steel and aluminium industries, but it is a source of strategic primary and secondary steel used in further value-added manufacturing in the US”, Davies said.

Davies explained to South African media the nexus between the meat imports from the US and any coming tariffs on SA’s automotive exports.

“We reminded our US interlocutors that the concessions we made on the three meats — poultry, pork and beef, as a quid pro quo — are linked to our continued benefit from Agoa (African Growth and Opportunity Act).” 

Davies also expressed concern about the ongoing section 232 investigation on automobiles and auto components. After the import duties on steel and aluminium, the US decided to investigate whether it should do likewise with regard to vehicles and car components under section 232. South Africa accounted for 0.4% of total US imports of automotive products according to last trade data. South African companies export niche products and semi-processed aluminium products for further processing in the US by automotive sector.

South African auto manufacturers would no longer export automobile parts to the US , which would significantly reduce South African exports to the US, he said.

Davies said that if section 232 duties were to be imposed on auto imports from South Africa, the AGOA benefits for South Africa would be significantly affected. He also indicated that if Trump administration targets South African automotive exports in the investigation, they would take the legal route to challenge that.  

The discussion was prompted by the United States’ annual review of the program, which is slated to continue for another 7 years before expiry. Davies expects the program to be renewed and continue negotiation in that regard.