The International Trade Administration Commission of South Africa (Itac) has initiated two major tariff reviews that could have significant implications for the country’s existing real-economy participants, its green-economy aspirations, as well as for South African consumers and taxpayers.

The first and most ambitious is a review of the steel tariff structure, the scope of which is simply enormous.

It covers the tariffs on steel and stainless steel products included in chapters 72, 73, 82 and 83 of the Customs and Excise Act and involves 609 tariff codes that govern R67-billion of yearly imports. Chapter 72 deals with primary carbon and stainless products such as hot-rolled coil, chapter 73 with articles such as wire and pipes, chapter 82 with tools and cutlery, and chapter 83 with miscellaneous steel products, including such items as padlocks.

In other words, protection levels for every steel and stainless product are being assessed, with potentially far reaching implications for downstream fabricators, as well as primary steel producers.

Both are currently struggling, with the former facing stiff import competition, which could well worsen as US tariff barriers result in a diversion of products directly towards South African markets, or indirectly to markets where South African exports traditionally flow. Upstream, the pressures are such that the longs unit of South Africa’s largest steel producer is currently operating only courtesy of an interest-free loan from the State-owned Industrial Development Corporation.

The second review initiated by Itac, meanwhile, involves 82 tariff codes for inputs and materials used in the renewables and battery storage value chains. It includes everything from solar panels and generators for wind turbines, to lithium-ion batteries, aluminium and steel structures and even the screws, bolts and nuts used in wind, solar PV and battery energy storage installations.

This review follows the recent approval by Cabinet of the South African Renewable Energy Masterplan, which outlines government’s strategy for stimulating industrial and skills development in key green-economy sectors.

In a different era, both reviews would have come as something of a shock and would probably have been met by howls of protest. Given the antics of the US administration under Trump 2.0, however, the reviews have solid geopolitical cover, as protectionism gains favour once again.

In some ways, this policy space is welcome, as it provides countries with a genuine opportunity to assess their options outside of the strictures that have prevailed more or less continuously since the end of the Cold War; a period that coincided with South Africa’s reintegration into the global economy.

That does not mean South Africa should approach its reassessment of trade and industrial policy as if decisions made during this period carry little risk. In reality, the trade-offs are all too real and the choices made will have material implications for the country’s investment trajectory, as well as for taxpayers, who will foot any incentives bill, and consumers, who ultimately pay for tariffs.

Itac should, thus, err on the side of extensive consultation and extreme transparency.