Africa-Press – South-Africa. A South African company that builds automated assembly lines and develops production software for BMW, Volkswagen and Mercedes-Benz lost contracts worth R750 million as a result of new US trade tariffs, News24 reported.
Jendamark Automation informed its board that the contracts that were expected to be signed within the next two to three months will no longer be happening, the website reported, citing Managing Director Siegfried Lokotsch.
“About 15% of our business is local and 50% is exported to America,” Lokotsch told News24. “We are now 30% more expensive, this crushes our competitiveness.”
On Friday, President Donald Trump announced 30% tariffs on South Africa as part of a slew of duties on US imports, putting pressure on the rand and the country’s equities.
South Africa’s government is preparing a package to support companies hit by the tariffs as it continues talks with Washington on a new trade deal.
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