Steel tariff measures being considered amid govt efforts to save ArcelorMittal jobs 'similar to what Trump is doing' - consultant

The Money Show's Stephen Grootes is joined by Donald MacKay, CEO of XA Global Trade Advisors.

The scramble to try and save ArcelorMittal SA's (AMSA's) long steel business continues, with Parks Tau this week saying discussions are at an advanced stage to save the 3,500 jobs involved.

The Trade, Industry and Competition Minister was addressing the bargaining conference of the National Union of Metalworkers of SA (Numsa) on Monday.

RELATED: Last-ditch govt efforts underway to save ArcelorMittal's steel mills - reports

Reports on a parliamentary briefing on Tuesday suggest that the Industrial Development Corporation (IDC) may extend funding to cover up to a year of salaries at AMSA's loss-making long steel division, which includes its Newcastle and Vereeniging mills.

At the same time, government is apparently considering a review of its complicated steel tariffs, possibly including import tariffs and restrictions, in a bid to protect the local industry.

Stephen Grootes gets input from Donald MacKay founder and CEO of XA Global Trade Advisors.

Changes like these would put our already understaffed International Trade Administration Commission (ITAC) under even more pressure, MacKay says.
Trade restrictions would also fall foul of the World Trade Organization (WTO) he adds, especially if you take such 'an incredibly blanket view' across all of this sector.

"What South Africa is proposing is something very similar to what President Donald Trump is doing in the US with these blanket tariffs, or hitting a whole sector with a very wide range of tariffs and other protectionist measures all in one shot..."

"...without any kind of analysis of what the specific situation is for the part of the steel value chain you find yourself in."

Donald MacKay, CEO - XA Global Trade Advisors

Scroll up to the audio player to listen to MacKay's analysis