The United States is preparing to impose new import taxes on steel from South Africa and nine other countries, pending the outcome of ongoing investigations into corrosion-resistant steel products.
- The United States plans to impose new import taxes on corrosion-resistant steel from South Africa and nine other countries.
- Investigations by the U.S. Commerce Department revealed evidence of unfair pricing and government subsidies in steel industries.
- The International Trade Commission will determine whether these taxes should go into effect following determinations of injury.
- South Africa is considering diversifying trade strategies to offset economic impacts from U.S. tariffs and protectionist policies.
The move follows affirmative determinations by the U.S. Department of Commerce that evidence exists of unfair pricing and government subsidies in these nations’ steel industries.
Corrosion-resistant steel, the department noted, is widely used in automobiles, appliances, and construction.
The determinations cover $2.9 billion (R51.1 billion) in imports from Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, the United Arab Emirates, and Vietnam.
According to U.S. Under Secretary of Commerce for International Trade William Kimmitt, American steel companies and workers “deserve to compete on a level playing field.” The department added, “Commerce made its final determinations that imports of core into the U.S. from 10 trading partners were being dumped and/or subsidized.”
The additional duties, known as anti-dumping and countervailing measures, are designed to protect U.S. steelmakers from foreign competitors selling products below market prices or benefiting from unfair subsidies.
While the taxes are not yet in effect, they could significantly increase the cost of imported steel for U.S. buyers if confirmed.
According to a Reuters report, before the measures take effect, the International Trade Commission (ITC) will make its own determination of injury to the domestic steel industry.
The Commerce Department said, “If the ITC makes an affirmative, trading partner-specific injury determination, Commerce will issue anti-dumping and countervailing orders.”
South Africa Remains in U.S. Trade Crosshairs
The recent trade dispute over steel imports from South Africa is just one of many conflicts the nation has faced with the United States.
Relations between Pretoria and Washington have been particularly tense under President Donald Trump, spanning a range of issues from debates over land and white farmers, to Elon Musk’s high-profile business dealings, and escalating trade tensions.
Earlier this year, Trump imposed a sweeping 30% tariff on South African imports, one of the highest rates applied to any Sub-Saharan African country, citing concerns over alleged dumping and unfair subsidies.
This tariff has had significant repercussions for South Africa’s export-driven economy, affecting steel, aluminum, automotive components, and industrial goods, while also putting the country’s duty-free access under the African Growth and Opportunity Act (AGOA) at risk.
Analysts note that these trade measures form part of Trump’s broader protectionist agenda, which has seen similar tariffs and investigations targeting nations including Lesotho, Nigeria, and others.
In response, South Africa is exploring diversification strategies, including strengthening intra-African trade links and expanding exports to Asian and European markets, in an effort to mitigate the economic impact of Washington’s protectionist measures.
