Egypt Imposes Temporary Safeguard Tariffs on Steel Products

Egypt announced the imposition of temporary safeguard tariffs on several steel products, effective from Sunday. 

The decision, which was made by Hassan El-Khatib, Egypt’s Minister of Investment and Foreign Trade, follows growing concerns from local manufacturers about harmful international trade practices.

The new tariffs are designed to protect Egypt’s steel industry from unfair practices in international trade and ensure a level playing field in the domestic market. In a statement, the Ministry emphasized that these tariffs are essential for safeguarding local production capabilities and encouraging fair competition.

The safeguard measures will remain in place for a period of 200 days, impacting several key steel products, including: Hot-rolled coils, Cold-rolled coils, Galvanized and colored sheets

Billets.

This decision comes as part of Egypt’s broader efforts to shield vital industries and promote sustainable local manufacturing.

The tariffs have been applied at varying rates depending on the product category, as follows:

Hot-rolled coils: 13.6% of the CIF (Cost, Insurance, Freight) value, with a minimum of 3,673 EGP per ton.

Cold-rolled coils: 11.11% of the CIF value, with a minimum of 4,152 EGP per ton.

Galvanized sheets: 12.16% of the CIF value, with a minimum of 4,812 EGP per ton.

Colored sheets: 4.94% of the CIF value, with a minimum of 2,584 EGP per ton.

Billets: 16.2% of the CIF value, with a minimum of 4,613 EGP per ton.

These tariffs aim to ensure that the domestic steel industry remains competitive and can continue to meet the growing demand for these products, both within Egypt and in international markets.

The decision to impose these temporary tariffs follows investigations initiated in response to complaints from local manufacturers, who have been adversely affected by the influx of cheap steel products from abroad. The investigation, initially expected to take 12 months, was expedited to ensure swift action. The 200-day safeguard measure allows manufacturers to voice their concerns before final decisions are made.

The Minister of Investment also pointed out that this move is in line with global trends, as many World Trade Organization (WTO) members have imposed similar protective measures due to excessive global steel production. With several countries seeing a surge in steel imports that threaten local industries, the tariff action aims to prevent harm to Egypt’s steel sector.

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