The United States is preparing to impose new import taxes on steel from South Africa and nine other countries, pending the outcome of investigations into corrosion-resistant steel products.
The U.S. Department of Commerce has determined 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.
“American steel companies and workers deserve to compete on a level playing field,” said U.S. Under Secretary of Commerce for International Trade William Kimmitt.
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 proposed duties, known as anti-dumping and countervailing measures, aim 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.
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According to Reuters, before implementation, the International Trade Commission (ITC) will determine whether these imports cause injury to the domestic steel industry.
“If the ITC makes an affirmative, trading partner-specific injury determination, Commerce will issue anti-dumping and countervailing orders,” the Commerce Department said.
South Africa has faced multiple trade disputes with the United States, and relations between Pretoria and Washington have been particularly tense under President Donald Trump, covering issues from land debates and Elon Musk’s business dealings to escalating trade tensions.
Earlier this year, Trump imposed a 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.
The tariff has affected steel, aluminum, automotive components, and industrial goods, while threatening South Africa’s duty-free access under the African Growth and Opportunity Act (AGOA).
Analysts note that these trade measures are part of Trump’s broader protectionist agenda, which has also targeted countries including Lesotho and Nigeria.
In response, South Africa is pursuing diversification strategies, such as strengthening intra-African trade and expanding exports to Asian and European markets, to mitigate the economic impact of Washington’s protectionist policies.
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Image Credit: CNBC Africa
