JOHANNESBURG (Reuters) -South Africa’s International Trade Administration Commission on Wednesday proposed import duties starting at 10% on steel products as part of measures to defend the sector from an influx of imports.
The government body released its preliminary findings after a broad review of steel tariffs it announced in March, as part of a response to South Africa’s steel crisis, marked by oversupply, weak local demand and high input costs.
Imports, mainly from China, are estimated to meet around 35% of total domestic consumption, leaving companies such as ArcelorMittal South Africa, the country’s biggest primary steel producer at risk of collapse.
The sector’s pain has been increased as U.S. President Donald Trump’s tariffs have added to South Africa’s challenges.
The commission, whose role includes conducting tariff investigations, offering trade remedies and implementing import and export controls, said its initial findings would not become final until it has received and reviewed feedback from the public over the next two weeks.
It said in a notice it had received more than 150 submissions “ranging from requests for duty increases, the creation of rebate provisions, inclusion of specific products under import control”.
It has proposed customs duty increases of 10% on products including flat-rolled steel, bars and rods, as well as wires whose applied rate is currently 0%. Selected tube and pipe products as well as nails would attract 15% duty, up from 10%, according to the schedule.
There is also provision for rebates on some steel products that have to be imported because they are not available in South Africa or in the Southern Africa Customs Union, which also includes Botswana, Eswatini, Lesotho and Namibia.
(Reporting by Nelson Banya and Nqobile Dludla; Editing by Barbara Lewis)
