This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
News24 reports that a 30% reciprocal tariff on SA goods into the US is expected to have a “significant and multidimensional” impact on the SA metals and engineering sector. This is according to a snapshot survey conducted by the Steel and Engineering Industries Federation of Southern Africa (Seifsa).
Of the 126 member companies that responded to Seifsa’s survey, over 33% said they would be directly affected by the tariff, with adverse impacts expected on revenue and jobs. “Many companies anticipate a dramatic drop in sales, with some stating that the US accounts for up to 20% of their turnover. The expected revenue declines are estimated at 10% to 20%,” Seifsa indicated. Several respondents indicated that, should the tariff persist, they would be forced to reduce their workforce or even close operations. Additionally, some companies have had to reconsider or halt planned investments.
Manufacturers also expressed concerns about production uncertainty, especially where their product offerings were specifically tailored to the US market demand. Almost 24% of the survey respondents anticipated they would be indirectly affected. Suppliers to exporters are anticipating reduced orders, while increased global steel prices and constrained access to key materials are expected to raise input costs. Respondents also flagged broader macroeconomic concerns, including rising inflation, decreased gross domestic product, and worsening unemployment. Nearly 16% of respondents said they were exploring alternative markets, although most survey respondents noted that these are limited and already under pressure.
- Read the full original of the report in the above regard by Lisa Steyn at News24 Business (subscription / trial registration required)
Get other news reports at the SA LabourNews home page