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Cape Town – Minister of Communications Nomvula Mokonyane said Cabinet was disappointed at the United States of America’s decision not to exempt South Africa from its application of steel and aluminium duties.
However, she said South Africa would continue discussing the matter with the US government to find a mutually beneficial solution to the matter. She said SA did not intend on leveraging its United Nations votes against the US’s wishes in a tit-for-tat skirmish.
The duties, which came into effect in March, include a 10% tariff on the imports of aluminium, and a 25% tariff on imports of steel into the US. Minster of Trade and Industry Rob Davies warned that the tariff increase could put local jobs in jeopardy.
Speaking to reporters in Parliament on Thursday, Mokonyane said during Cabinet’s meeting on Wednesday, members of Cabinet expressed their disappointment in the decision not to exempt SA to the duty and, in so doing, imposing a hike in steel and aluminium duties.
“The South African government will continue to engage with US authorities to find a mutually acceptable outcome. Cabinet also encourages domestic importers to continue to lobby US buyers to apply for product exemptions, as South African companies export niche products and semi-processed products for further processing in the US,” said Mokonyane.
Local steel and aluminium products account for less than 2% of US imports according to the Department of Trade and Industry. Captains of industry have said the tariff would cost exporters R3bn.
