South Africa receives US import tariff exemption on 161 aluminium products

South Africa’s Department of Trade and Industry (DIT) announced yesterday, October 24, about its receipt of exemption on 161 aluminium and 36 steel products from the US aluminium and steel imports under Section 232 tariffs by the Commerce Department.

The product exemptions are reportedly applicable only to those companies whose buyers in the United States had made requests to the Commerce Department for an exemption from the Section 232 duties. For aluminium, the products exempted include aluminium foil and plate, and sheet and strip.

This move is expected to contribute towards securing jobs in companies producing these products. Minister Rob Davies has extended his gratitude to the South African and US companies, as well as Members of Congress that had lobbied for the exemption of South Africa from all Section 232 duties.

The exemption of some of the aluminium and steel lines confirms that South Africa remains a source of strategic primary and secondary products used in further value-added manufacturing in the US and thus, does not threaten US national security. Rather, contributes to jobs in both countries.  

In 2017, the United States had imported 110,487 tonnes of unwrought aluminium from South Africa, which marked 2.3 per cent of the overall US imports and 4.6 per cent inflows, International Trade Commission data showed.

South African trade minister Rob Davies had put in a formal request for a country-wide exemption from the US Section 232 tariffs in March and met with US Trade Representative Robert Lighthizer and Ross in Washington in July. This still continues, according to the report from the Department of Trade and Industry.

“While South Africa welcomes this important relief to our exports, [the] government remains engaged with the US government and continues to request a country exemption,” the DIT said.