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South Africa considers 10% steel import duty

South Africa’s steel sector faces high energy costs, aging infrastructure, and import pressure. Strategic investments and local manufacturing are seen as critical to boosting production and creating jobs.

 South Africa considers 10% steel import duty

South Africa is considering a 10% import duty on steel products to protect its domestic industry. The country’s trade body, ITAC, released preliminary findings from a review of steel tariffs initiated in March. The review was stated to aim at supporting a sector struggling with high costs, weak domestic demand, and import pressure.

ITAC recommended urgent measures under World Trade Organization (WTO) rules to protect local producers. The rules were noted to allow tariffs to be suspended or withdrawn if imports of certain products increase under conditions that threaten serious harm to domestic manufacturers.

Currently, imports account for approximately 35% of South Africa’s total steel consumption. It was indicated that this poses risks for major producers such as ArcelorMittal South Africa and could affect thousands of jobs.

ITAC Chief Commissioner Ayabonga Cawe highlighted that recent steel import restrictions by the European Union and the United Kingdom have raised concerns about unfair competition and market diversion in South Africa. U.S. tariffs were also stated to add further pressure on the sector.

The commission clarified that no final decision has been made yet and that public feedback will be reviewed. It was reported that over 150 submissions have been received, including requests for higher duties, rebate schemes, and the inclusion of specific products under import controls.

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