Shockwaves from the unilateral US tariffs imposed on South Africa and “chronic overcapacity” among large exporters, especially China, have led to a surge in the caseload of the tariff regulator, the International Trade Administration Commission (Itac).
Itac chief commissioner Ayabonga Cawe said they faced an “unprecedented caseload”, primarily due to an unprecedented trade environment. Itac was implementing trade remedy investigations across a range of product markets.
“I don’t want to speculate on a number, but if I am to compare the same time five years ago, we are definitely faced with a caseload that is much higher than we would have been accustomed to.”
Tariffs announced by US President Donald Trump in April kicked in on August 7 and are expected to rock exporting companies and threaten jobs in South Africa and abroad.
Cawe said the higher caseload was a result of trade deflection and chronic overcapacity in some product markets. Some exporters were producing more of a product than there was feasible demand for in the global market.
It’s not in our interests to retaliate. We have no intention to do so
— Ayabonga Cawe, Itac chief commissioner
“This would ordinarily, in theory, be seen as an episodic thing, something that would happen in cycles every few years. But we are seeing, in the last decade, situations where there is a chronic overcapacity in some markets of certain products.”
One example was the production level of steel in China, which is at over 1Gt annually and is sold to other regions at below market prices, or dumped.
Asked whether South Africa should retaliate and impose higher tariffs on US imports, especially in response to the hardball negotiating tactics of the Trump administration, Cawe said: “It’s not in our interests to retaliate. We have no intention to do so.”
He said any tariffs imposed by South Africa would only be to protect local industries in instances where Itac investigations find evidence of unfair trade.
“The use of tariffs ... is a discretionary policy measure. They are different measures responding to different ‘conjectural developments’. But for us to say a duty, is a duty, is a duty, is not appropriate.”
The minister of trade, industry & competition, Parks Tau, said South Africa was ready to make use of trade remedy measures to safeguard and protect its industry within the agreements of the World Trade Organisation.
“This will involve consideration and, on the balance of evidence, the use of anti-dumping, anti-subsidy and safeguard measures to protect the domestic industry that may be affected by such trade deflection or diversion.”
He said the US tariffs affected more than 130 of its trading partners and other markets would be sought for goods destined for the US that now face prohibitive restrictions.
“Chronic overcapacity observed in the world markets for key products like steel, glass, subsidised agricultural products, solar, and automotive vehicles will make this search harmful for our domestic industry.”
Tau said a team deployed to Washington to engage with US trade representative Jamieson Greer included personnel from his department, the department of agriculture and the Presidency.
The team had added support from the department of mineral and petroleum resources as some of the US government's demands involved investments in those sectors.
Luthando Vuba, executive head of international trade at Standard Bank Group, said that as South Africa's automotive sector navigates a shifting global trade environment and competitive pressures, including the 30% US tariffs, the African Continental Free Trade Area could unlock opportunities for it to deepen its presence in high-growth markets across the continent.
“We hold vital raw materials that are essential for modern automotive manufacturing — these include copper, cobalt, bauxite and lithium — positioning Africa as a crucial player in the global automotive ecosystem.”
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