Premier Oscar Mabuyane has just 15 days left before the United States of America levels its 30% import tariffs on goods and produce from South Africa, to present an economic model and plan to mitigate the impact and protect the Eastern Cape economy. Already, the 25% tariff levelled in April 2025 is having devastating effects on our Province’s automotive sector, and yet Mabuyane remains silent on a modelled and tested economic mitigation strategy.
As a starting point, Premier Mabuyane must obtain and communicate the national Department of Trade, Industry and Competition’s (DTIC) economic modelling on the impact of US tariffs, and the Premier must work with national minister Parks Tau to ensure that the data modelled by the national government is urgently applied to the Eastern Cape’s most affected industries. Mabuyane must publicly share this modelling with stakeholders across the province to remove the fog of fear and anxiety that is building.
The DA calls on Premier Mabuyane to address the province, take business into confidence, and allay fears that the Provincial Government is currently caught on the back foot. The DA insists that Premier Mabuyane speak up now on what the Province can and will do in the face of these tariffs.
The Premier must also engage with DTIC to be certain that the Eastern Cape’s economic realities are reflected in the national government’s modelling of the economic impact. This includes commissioning a review against provincial data and ground-level conditions to determine whether the national projections fully capture the scale of risk posed to local industries and jobs. The Province simply cannot afford for our prolific automotive, manufacturing and agricultural sectors to be under-represented in the national government models and plans.
The United States’ imposition of a 25% tariff on vehicle imports in April, and a further 30% tariff on other South African exports from 1 August, threatens to severely disrupt the province’s manufacturing base and broader economy. Yet, no comprehensive information has been released by the provincial government.
These new tariffs effectively dismantle the benefits of the African Growth and Opportunity Act (AGOA), which for decades provided South Africa with preferential access to US markets.
Vehicle exports are already in sharp decline. South African exports to the US dropped by 82% in the first half of 2025, falling from 16,112 units to just 2,875. The Mercedes-Benz plant in East London, a key exporter, has been particularly hard hit. The collapse confirms that the Eastern Cape’s automotive sector faces a direct and escalating threat.
Other manufacturing sub-sectors are also exposed. Industrial parks in Gqeberha, East London, and Mthatha rely on access to export markets for machinery, processed goods, and clothing. These are now at risk.
Although the Eastern Cape does not export significant volumes of citrus directly to the United States, neighbouring regions in the Western and Northern Cape do. Those producers will now be forced to redirect exports, putting pressure on market access for Eastern Cape growers already operating under strained conditions.
In response to a parliamentary question from the Democratic Alliance, the MEC for Economic Development, Environmental Affairs and Tourism, Nonkqubela Pieters, listed possible interventions such as an export resilience fund, retooling support, and trade diversification. However, no clarity has been provided on funding, timelines, or delivery mechanisms.
The DA calls on the Premier to act immediately. The DTIC’s modelling must be secured and shared with all affected sectors. A provincial review must also be conducted to verify that the national data accounts for the full scale of local impact. The provincial review must also include actionable short-, medium- and long-term interventions.
The DA will continue to hold the provincial government accountable, and fight for the protection of Eastern Cape jobs and industries.
Democratic Alliance – Eastern Cape
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