sassda news
Sixty Minutes with Stainless Webinar: Full Report True impact of economic fallout from US duties
Sassda has voiced serious concern following the recent imposition of an average 30% tariff by the United States on South African stainless steel exports. The matter was a key focus of our latest 60 Minutes with Stainless webinar, which featured prominent economist Dawie Roodt as the keynote speaker. Roodt delivered a hard-hitting assessment of the impact of such measures, warning that tariffs, regardless of how they are framed, are “nothing more than taxes” that ultimately burden the consumer and distort market dynamics. “There’s no such thing as a tariff that’s paid by the exporter,” he noted. “The cost is passed on, raising local prices, and although some producers may benefit in the short term, the long-term effect is reduced competitiveness and slower innovation.” Roodt reiterated that global data supports a free-market approach governed by fair and transparent rules. “We need to be cautious of measures that claim to protect but instead entrench inefficiency.” Political posturing or economic policy? The recent US tariff hikes, which range from 0% to 50%, have been positioned by the US government as a response to its growing trade deficit. However, Roodt argued that the real driver is geopolitical leverage, not economic necessity. “This isn’t about South African exports threatening
American industry,” he said. “It’s about the US using trade as a bargaining chip particularly in response to South Africa’s global alliances and positions on key policy issues like expropriation.” Roodt warned that unless South Africa presents a more neutral and economically stable image on the world stage, the country could face further punitive measures. “Tariffs are only one stick in the diplomatic arsenal,” he cautioned. “Others could follow.” ”Our members are calling for smarter, targeted interventions not blanket measures that hurt competitiveness.” Michel Basson, Sassda Executive Director Structural Reform: A local imperative At a national level, Roodt highlighted the ongoing structural weaknesses in South Africa’s economy, from sluggish growth to poor policy implementation and investor uncertainty, noting that these must be urgently addressed if the country is to remain competitive globally. He called for a clear repositioning of South Africa as a reliable, politically neutral trading partner, adding that inward-looking legislation and inconsistent policies only serve to alienate the very allies we need. Manufacturing must modernise Turning to the industrial landscape, Roodt emphasised that manufacturers including those in the stainless steel sector must embrace new global realities, including the integration of technology and services.
7
Issue 3 – 2025
Made with FlippingBook - professional solution for displaying marketing and sales documents online