South Africa's trade authorities proposed sweeping tariff increases on steel imports, declaring an "unprecedented emergency" facing the domestic industry. The International Trade Administration Commission cited flood of low-priced imports from China and India, duty circumvention, and geopolitical tensions as causing severe strain to manufacturers. The measures include a 10% duty on nearly 20 flat-rolled and bar products that currently face no tariffs.

ITAC wants to raise duties on more than 40 classes of tubes, pipes, fencing and bolts to 15% from 10%, while implementing a 20% tariff on tools and knives. The agency also proposed rebate provisions to ensure downstream manufacturers have access to inputs not produced domestically. South Africa's steel production has plummeted from 9.7 million tons in 2006 to just 4.5 million tons last year, with domestic producers struggling against cheaper imports and rising costs.

ArcelorMittal South Africa last year shut a steel-making facility, citing competition from mini-mills that use scrap metal rather than iron ore. The company has demanded the government eliminate a 20% tax on scrap exports, which it claims reduces material costs for rivals. ITAC has submitted its recommendations to Trade, Industry and Competition Minister Parks Tau for consideration.