Possible US tariffs on car imports might mean job losses in SA

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The exit of BMW from the US market has seen a sharp decline in South African motor vehicle exports there

The decision by US president Donald Trump in the next three months on whether or not to impose tariffs on the imports of vehicles and their components will have a significant effect on SA, and could result in job losses.

“The department of commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security.” . According to the National Association of Automobile Manufacturers of SA the number of vehicles exported to the US declined from 53,606 in 2015 to 13,037 in 2018. This was because in 2018, the largest vehicle exporter, BMW, shifted production from the 3-Series — which it used to export to the US — to the X3 SUV, which is now destined for Europe.

 

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