South Africa has increased import duties on a range of steel products to between 10% and 30%, in a bid to protect its struggling domestic industry from a surge in cheaper imports, particularly from China.
The measures, published in a government notice dated May 15, apply to products including flat rolled iron and non alloy steel, as well as bars, rods, tubes and pipes. Previously, tariffs on these categories ranged from zero to 15%, highlighting the scale of the policy shift.
The decision follows mounting pressure from local producers such as ArcelorMittal South Africa, which has already shut down some mills amid weak domestic demand and intensifying global competition. The International Trade Administration Commission (ITAC) had last year urged the government to introduce emergency protections, warning that the sector was at risk of further contraction without intervention.
ITAC Chief Commissioner Ayabonga Cawe said the tariff increases are intended to give local producers breathing room to stabilise operations and reinvest in capacity. “We are hoping that this decision will provide the local industry necessary space to adjust,” he said.
South Africa’s steel market has become increasingly reliant on imports, which account for roughly 36% of total consumption. China dominates that flow, making up about 73% of imported steel, according to industry data.
The new tariffs are part of a broader pattern of trade defence measures. In March, South Africa imposed steep duties on structural steel imports from China and Thailand after authorities found evidence of dumping, where products are sold below market value to gain competitive advantage.
Alongside the tariff hikes, the government has also adjusted rebate structures for downstream manufacturers that rely on steel inputs, including those in construction and electronics. ITAC said these changes are designed to balance protection for producers with the needs of industrial users.
Certain countries will continue to benefit from preferential trade arrangements, meaning the new duties will not be applied uniformly across all import sources.
The policy reflects a broader challenge facing South Africa’s industrial base. With sluggish economic growth, rising input costs and global overcapacity in steel, policymakers are increasingly turning to protective measures to sustain local manufacturing.
Whether the tariffs will translate into long term recovery for the sector will depend on how quickly producers can modernise operations and whether domestic demand can rebound.
