Jendamark Automation, a South African company specializing in automated assembly lines and production software for global automakers such as BMW, Volkswagen, and Mercedes-Benz, has lost contracts worth 750 million rand ($41 million) following the imposition of new US tariffs.

The company informed its board that contracts expected to be finalized within the next two to three months have been cancelled, Managing Director Siegfried Lokotsch told News24. “About 15% of our business is local and 50% is exported to America,” Lokotsch said. “We are now 30% more expensive; this crushes our competitiveness.”

The tariffs, announced last Friday by then-President Donald Trump, imposed a 30% duty on South African imports as part of a wider package of US trade measures targeting several African countries. The announcement triggered a sharp depreciation of the rand to a three-month low and sent equities tumbling.

Several other African nations, including Lesotho, with its textile sector facing a reduced 15% tariff from an initially proposed 50%—as well as Nigeria, Madagascar, Mozambique, and Zimbabwe, now contend with similar 15% tariffs. 

South Africa’s automotive sector, employing around 115,000 people, is particularly vulnerable. Jendamark’s contract losses exemplify the challenges manufacturers face amid rising trade barriers and currency volatility.

The South African government is reportedly preparing a support package for companies impacted by the tariffs while engaging Washington in talks to negotiate a revised trade deal. However, the tariffs threaten to cause widespread economic damage, with estimates suggesting potential job losses of up to 100,000 across key sectors including automotive and agriculture.