South Africa Imposes High Tariffs on Chinese Steel
On Friday, South Africa’s International Trade Administration Commission (ITAC) declared it would enforce substantial tariffs on imported steel from China, following an investigation that revealed product dumping.
Specifically, the tariff rate on structural steel from China will now be set at 74.98%, which is a significant increase from the previous 52.81% imposed in 2024 after similar dumping practices were uncovered.
ITAC’s investigation also indicated that Thailand was involved in dumping steel during both 2024 and 2026, leading to tariffs of 9.12% and 20.32% being applied, respectively.
This decision has received approval from South Africa’s Minister of Trade, Industry and Competition, Parkes Tau, and these new tariffs are expected to remain in place for up to five years.
The South African steel industry has struggled in recent years, citing the influx of inexpensive steel from China as a primary challenge to its viability.
According to ITAC, around 29,000 tonnes of structural steel are anticipated to enter the South African market in 2023-2024, with roughly 65% originating from China. The agency noted that Chinese subsidies have artificially lowered steel prices, making them, notably, about 20% cheaper than those produced domestically.
As steel imports rise, local manufacturers like ArcelorMittal South Africa (Amsa) have seen profits decrease, resulting in factory closures and job losses. Amsa has been a key supplier of steel to the railway sectors in South Africa and surrounding countries within the South African Customs Union (SACU).
ITAC concluded that the surge of low-priced imports was a tactical maneuver aimed at undermining South African producers, which prompted the tariff decisions as a protective measure. Alongside structural steel, higher tariffs have also been imposed on other metal imports from China, Japan, and Taiwan.
Analysts believe that these new tariffs might help local manufacturers regain their market share, stabilize pricing, and invest in sustaining production and jobs. A report from Business Insider Africa stated that this intervention could allow domestic companies a fairer competitive ground while preserving the longevity of steel utilized in construction projects.
The ITAC’s actions are also influenced by wider international scrutiny. Previously, the U.S. criticized South Africa’s steel exports under the Trade Remedies Framework, pointing out complexities in the global steel market.
As of now, the Chinese government has yet to respond to this decision by ITAC.
The issue of steel dumping is particularly sensitive since both South Africa and China are members of the BRICS economic group, which aims to balance power against Western coalitions like the G7. Iran, which joined in 2024, has also seen significant outcomes from its membership.
South African officials have voiced concerns that their economies are not only threatened by product dumping but also by “illicit trade,” which spans various illegal items, including unbranded cigarettes and counterfeit drugs. The black market is reportedly growing at a pace faster than the formal economy, affecting tax revenue severely.
In January, British American Tobacco South Africa (BATSA) announced its plans to close its last factory and cease domestic production by the end of 2026, largely because of the illegal tobacco trade. Company representatives mentioned that around 75% of the domestic market is currently controlled by illegal operators.
