South Africa nears decision on steel tariffs amid import influx
South Africa's government will release the preliminary findings of its review of steel tariffs next week, moving a step closer to protecting the local industry from increased imports.
The review was initiated by the International Trade Administration Commission (ITAC) in March, following a ministerial directive.
South Africa's steel industry faces numerous challenges, including an influx of low-priced imports due to overcapacity, primarily in China.
US President Donald Trump's tariffs have also disrupted trade flows this year, while depressed demand and energy and logistics challenges have added to the problems in South Africa.
"We've got a gazette coming next week. That gazette will include preliminary findings of the review," ITAC Chief Commissioner Ayabonga Cawe told Reuters on Thursday on the sidelines of an auto parts conference.
The review comes as the government is locked in talks with ArcelorMittal South Africa, which has said it plans to close its loss-making long steel operations that are crucial for the local automotive, mining equipment and construction industries. Among its complaints is a flood of cheap imported steel from China.
Cawe said ITAC had received around 150 responses for the review. More than 600 tariff codes are under review.
ITAC needs to determine whether its various current steel duties are providing appropriate protection, whether more steel products need to be under import control and whether to declare an emergency to trigger broader safeguard measures.
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