The City of Cape Town has urged the National Government to intervene amid the US tariff threat to the local boat-building sector.

The Mayoral Committee Member for Economic Growth, James Vos, has written to the Minister of Trade, Industry and Competition, Parks Tau, to express serious concerns over the potential impact of the significant tariffs imposed by the United States on boat imports from South Africa.

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Vos says the letter comes after he met with representatives from Cape Town’s boatbuilding industry, including BlueCape and the South African Boat Builders Export Council (SABBEX).

The industry has emerged as one of the city’s fastest-growing manufacturing sectors, with an average annual growth rate of over 22% and exports valued at nearly R5 billion in 2023 alone.

The City is recognised globally as a leading exporter of catamarans, with the United States serving as the primary market for many local manufacturers.

But Vos says these proposed tariffs pose an existential threat to the entire industry, which supports 3,500 direct jobs and contributes significantly to the local economy.

“Many of these companies rely on the US market for the majority of their sales, and the impact of these tariffs would be devastating.”

In his letter to the Minister, Vos has emphasised the need for national trade negotiators to take insights provided by the sector to their US counterparts.

This includes evidence that South African-built vessels also contribute to the US economy by supporting jobs in areas such as charter operations, distribution, and marina management.

“Cape Town’s boatbuilders offer highly specialised skills that align with US interests in marine manufacturing and skills development. This should be a platform for partnership, not punitive trade measures.”

Vos says they are working closely with stakeholders to safeguard jobs amid the uncertainty.

The Founding Director for BlueCape Vanessa Davidson has echoed Vos’ sentiments.

“As a specialised manufacturing industry, boat building involves complex global supply chains and interdependencies that demand a coordinated response to safeguard the continued international competitiveness of our manufacturers.”

Vos says the National Government needs to treat the matter with the urgency it requires, not only to protect livelihoods, but also to reinforce the long-standing economic ties between South Africa and the United States.