South Africa Hits Chinese, Thai Steel Imports with Major Tariffs After Dumping Probe

South Africa’s trade regulators have announced significant new import duties targeting structural steel from China and Thailand following a comprehensive investigation that uncovered evidence of unfair trade practices.

The International Trade Administration Commission of South Africa revealed that Chinese structural steel imports will now face a substantial 74.98% tariff, while products from Thailand will be subject to a 20.32% duty. These final rates represent a major increase from the temporary measures implemented in 2024, which set provisional duties at 52.81% for China and 9.12% for Thailand.

The new tariffs specifically target structural steel products primarily utilized in construction projects. According to the March 19 government announcement, the trade commission’s investigation determined that both countries were engaging in dumping practices.

In their official statement, regulators concluded that steel products “originating in or imported from the PRC and Thailand was being imported into the SACU market at dumped prices, thereby causing material injury.”

The commission explained that dumping occurs when products are sold in foreign markets below normal pricing or production costs, creating unfair competition that harms local manufacturers.

Officials from both the Chinese and Thai embassies have not yet responded to requests for comment regarding the new trade restrictions.

The trade commission confirmed that South Africa’s commerce minister has given approval for the recommended tariff structure.

South Africa’s steel sector has been struggling with declining domestic demand while simultaneously dealing with a surge of foreign imports, predominantly from Chinese manufacturers. Major industry players like ArcelorMittal South Africa have been forced to close production facilities due to these market pressures.

According to data from the South African Iron and Steel Institute, imported steel represents approximately 36% of the country’s total steel usage, with Chinese products accounting for 73% of those imports.