The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) announced that the 30% import tariff imposed by the United States on South African steel and engineering products, effective from 1 August, will have serious and multifaceted impacts on the sector.
According to a survey conducted among 126 SEIFSA member companies, 33.3% expect direct losses in revenue and employment, while 23.8% anticipate negative effects on supply chains and the broader economy. Only 12.7% stated they would not be affected, while the rest reported uncertainty and are seeking alternative markets.
Some companies generate up to 20% of their sales from the US market and expect revenue declines of between 10% and 20%. In the long term, risks include workforce reductions, cancellation of investment plans, and possible production halts. Meanwhile, companies exploring alternative markets face difficulties in Africa due to aggressive pricing from China, while protectionist policies in other countries further hinder export diversification.
SEIFSA Acting CEO Tafadzwa Chibanguza commented:
“Tariffs will not only affect companies that export directly to the United States, but the entire ecosystem — suppliers, customers, and competitors alike. This poses the risk of a ripple effect of contraction across the sector.”
The report urges the government to implement export diversification incentives, financial support, and stronger trade diplomacy, while noting that structural challenges — such as high labour and energy costs — had already weakened competitiveness even before the tariffs were imposed.
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