Industry body the Southern Africa Stainless Steel Development Association (Sassda) has raised concern over new trade headwinds following the US’ imposition of an average 30% tariff on South African stainless-steel exports. The issue was the focal point of Sassda’s latest ‘60 Minutes with Stainless’ series webinar on July 9, which featured economist Dawie Roodt as the keynote speaker.

Roodt noted that while protective tariffs are often implemented in the name of defending domestic industries, the long-term effect is usually reduced competitiveness and slower innovation.

“The data is clear. Free markets, when left to operate with fair rules, deliver better outcomes.”

At the time of writing, the 30% tariff was still in place and negotiations between South Africa and the US were ongoing.

The US’ tariff hikes which range from 0% on some goods to 50% on others has been justified by US President Donald Trump as a response to the US’ growing trade deficit, but Roodt argued that the rationale is more political than economic.

“This isn’t about South African exporters threatening American industry; it’s about using trade as leverage to pressure South Africa over issues like expropriation legislation and foreign policy alignment.”

He warned that if South Africa does not neutralise its political positioning, particularly on global alliances and local economic policies, more aggressive measures could follow: “Tariffs are only one stick. The US has many others.”

Adapting to a New Economy

Global trends, Roodt noted, are moving sharply toward services and technology. He urged South African manufacturers, including those in stainless steel, to shift their business models in response.

He added that industries failing to innovate and adapt will face shrinking margins as global oversupply, automation and falling commodity prices continue to compress profitability.

Further, he suggested that, while the African Continental Free Trade Area presents a long-term opportunity for intra- African trade, infrastructure, skills and weak institutions remain major barriers to continental integration.

Sassda Survey Results

Sassda also presented results from a recent member survey on tariffs, which reflected nuanced sentiment across the sector.

Key findings infer that more than 70% of respondents rejected a blanket tariff on all imported stainless steel, citing concerns over price increases and restricted competition. Support grew when the idea of targeted tariffs, focusing on specific countries accused of dumping or exporting substandard products, was introduced.

Sassda executive director Michel Basson said the results will inform a more focused engagement with government on trade policy.

“Our members support a fair and rules-based trading environment. We will continue advocating for sector-specific protections only where justified, and where local capacity exists to meet demand without sacrificing quality or price competitiveness.”