The Nelson Mandela Bay Business Chamber, said the 30% tariff on South African products, imposed by the United States, as from the 07 August, will most likely affect the Eastern Cape, the most.
Denise van Huyssteen, Chief Executive Officer of the Business Chamber, said “we are deeply concerned about the impact on our automotive industry, anchored by the Original Equipment Manufacturers (OEMs). They are responsible for creating well over a 100,000 jobs at their own operations and within their component supplier networks.”
Around 40% of automotive employment in the country is located in the Eastern Cape.
She said related industries will also feel the pinch, including logistics and transport sectors, office supplies, workwear and tools, services such as banking, IT, cleaning, catering, security, maintenance marketing, tourism, hospitality, real estate, events, retail and conferencing.
“It is estimated that each job in top-tier manufacturing, creates another five jobs through the supply chain, with substantial socio-economic impact, as each employed breadwinner supports approximately 10 people in extended families and communities as well as spending their income in local businesses.”
van Huyssteen said the Chamber welcomes the establishment of an Export Support Desk by the Department of Trade and Industry, to serve as a contact point for impacted exporters.
“We hope that the South African government will continue to engage with the US in an attempt to secure a more favourable outcome. Along with this, it is vital that other emergency measures are rolled out to protect local manufacturers.
It is critical that Government moves with speed to step up and take action to protect local manufacturing and put it on a much more level playing field with global competitors.”
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