The automotive sector in the Eastern Cape EC is concerned about the planned 30 on South African exports to America as ordered by US President Donald Trump.
The proposed tariff is expected to come into force on the 1st of August, combined with the 10 tariff levied on BRICS members, meaning exporters face a potential 40 tariff hit and this will completely erode South Africas competitive edge in overseas markets.
Operations Director at Jendamark Automation, Seigfried Lokotsch says, more than 500 people from the Nelson Mandela Bay region work in the company and their jobs are under threat due to the huge, planned tariff increases.
Jendamark Automation is a big player in the vehicle component and automation sector and they export 85 of their components to vehicle manufacturers across the world.
Its devastating for us the prices are set to skyrocket and our customers in America wont buy it because our competitors in their country are selling for the same price. So, its clear that we will be losing business which essentially means that revenue will be lost for Jendamark and lost to Gqeberha which will affect all stakeholders, suppliers and employees which is a devastating loss.