South Africa’s Mineral Exports to the US Mostly Exempt from Tariffs

South Africa Minerals

Key South African Minerals, Including PGMs, Escape New US Tariffs Amid Trade Tensions

South Africa’s mineral exports to the United States, including valuable platinum group metals (PGMs), have been largely exempted from the latest round of US import tariffs. President Donald Trump's announcement on April 2, 2025, introduced reciprocal tariffs on a variety of goods, but crucial mineral exports such as PGMs, gold, manganese, titanium, chrome, and coal will not be subject to additional duties. However, some South African exports, such as iron ore and diamonds, will face a 30% tariff.

Impact of Tariffs on South Africa’s Economy

In 2024, South Africa exported 65.3 billion rand ($3.4 billion) worth of mineral products and precious metals to the US, with PGMs accounting for 76% of the total value. Despite the tariff exclusions on key minerals, other sectors, particularly the automotive industry, are expected to face significant economic impacts. The Minerals Council South Africa (MCSA) has warned that the new tariffs on iron ore and diamonds will hurt the country’s economy, particularly its automotive manufacturing sector.

Additionally, a separate 25% tariff on all US imports of cars and trucks, which took effect on March 26, 2025, is expected to reduce demand for automobiles in the US. This, in turn, will affect PGMs, as platinum, palladium, and rhodium are critical for the production of autocatalysts used to reduce vehicle exhaust emissions. Slowing car sales will result in reduced demand for PGMs, leading to potential price volatility in the near term.

Long-Term Outlook for PGMs

Despite these short-term concerns, the MCSA remains optimistic about the long-term outlook for PGMs. Although current market conditions may cause fluctuations in prices, the demand for PGMs is expected to remain strong over time. However, the broader economic challenges posed by these tariffs—particularly their potential impact on global growth—are concerning for the entire South African mining industry.

South Africa exports 7% of its goods to the US, a relatively small share in terms of total US imports (0.25%). Despite this, the country has limited capacity to retaliate against these tariffs. Experts suggest that South African exporters will need to explore alternative markets and enhance collaborative efforts to mitigate the impact of these tariffs.