Tooling Sector Seeks Tariff Relief Over High-Strength Steel Imports

Local manufacturers reliant on imported high-strength steel tools have approached the government for relief from sweeping new tariffs on imported steel. The R13-billion local tool, die, and mould-making (TDM) manufacturing sector requires specialised steel that is currently unavailable from domestic producers. High-strength steel is primarily used to manufacture precision cutting tools—such as end mills, drills, and taps—as well as wear-resistant components like piercing and ejection punches. 

“We have established that for the Tool, Die, Mould and Special Machining sectors, the biggest and most urgent impact is on high-strength steels,” confirms Tapiwa Samanga, Group CEO of the Production Technologies Association of South Africa (PtSA). “We are therefore appealing to the government for a reversal of the applied measures or an expedited, backdated rebate.” 

The Cape Chamber of Commerce and Industry helped facilitate the dialogue in the hope of expediting this rebate process. 

The International Trade Administration Commission of South Africa (ITAC) implemented these tariff hikes on May 15 to shield the domestic primary industry from global overcapacity and a surge of cheap imports. The regulations significantly raised import duties across an array of baseline steel categories—ranging from flat-rolled products and rods to tubes and fasteners—with rates climbing up to 20% and 30%. While ITAC paired these protectionist hikes with targeted rebate provisions for specialised inputs not manufactured locally, the TDM sector is struggling with the immediate financial friction of the rollout. 

The TDM sector is valued at R13 billion per annum, with associated maintenance services contributing another R2 billion per year. 

“Because over 85% of TDM demand is currently fulfilled by imports, the value of locally manufactured and supplied tooling (excluding imports) is R2 billion per year,” PtSA notes in a briefing document prepared ahead of its exemption application. “The domestic industry is currently heavily reliant on imported tooling, dies, and moulds.” 

The dtic and PtSA are collaborating on an initiative focused on modernising the sector, boosting localisation, and training skilled toolmakers at Centres of Excellence across the country, including hubs in KwaZulu-Natal (Pinetown), Gauteng, the Western Cape, and the Eastern Cape.