South Africa Pushes Back on cheap Steel from China, Thailand with 75% Tariffs

South Africa has taken a firm stand against the influx of low-cost steel from China and Thailand by imposing import duties of up to 74.98% on Chinese structural steel and 20.32% on Thai products.

The steep tariffs follow an investigation by the International Trade Administration Commission of South Africa (ITAC) that found evidence of dumping.

Dumping occurs when foreign producers sell goods in another country at prices lower than their normal value or production cost, often to gain market share, which can harm local industries.

The duties, approved by the country's trade minister, cover structural steel primarily used in construction and are aimed at protecting domestic producers from unfair competition.

The move follows provisional duties imposed in 2024, when China and Thailand faced 52.81% and 9.12% tariffs, respectively. ITAC concluded that steel imports from China and Thailand were entering the Southern African Customs Union (SACU) at prices below normal market levels, causing material injury to local manufacturers.

South Africa's steel industry has been battling weak domestic demand and an influx of cheap imports, forcing companies like ArcelorMittal South Africa to close some mills temporarily.

The new tariffs are expected to help domestic producers regain market share, stabilize prices, and invest in maintaining production and employment. Analysts say this intervention will allow local companies to compete fairly while ensuring the long-term durability of steel used in construction projects.

China's dumping of lower-priced steel in Africa is largely driven by global overcapacity and the need to offload excess production. While these imports are cheaper, they are often less durable than locally produced steel, creating potential risks for infrastructure projects.

The policy also follows broader international scrutiny: the United States has previously criticized South African steel exports under its trade remedies framework, highlighting the challenges of navigating global steel markets.

With imports making up 36% of South Africa's total steel consumption—73% from China—the new tariffs are expected to strengthen local capacity and protect the sector from further dumping, securing a more sustainable future for South Africa's steel industry.