The Minerals Council South Africa has expressed concern about the implications of tariffs imposed by the US government on imports from foreign countries.
While the majority of South Africa’s minerals and metals sold to US consumers are excluded from the tariffs, there are some like iron ore and diamonds that will be subject to a 30% reciprocal tariff on imports from South Africa
The Minerals Council said in a statement on Thursday, last week, it notes that platinum group metals (PGMs), coal, gold, manganese and chrome are specifically excluded from the tariffs.
Hugo Pienaar, chief economist at the Minerals Council, “despite the exclusions, we remain concerned about the adverse impact on business and consumer sentiment and the resultant feedthrough to business investment, consumer spending and ultimately global real GDP growth caused by this unprecedented upheaval in world trade. Global growth coming under threat is bad news for the entire South African mining industry.
Even though PGMs are excluded from the latest round of tariff increases, vehicle prices in the US will increase because of the 25% tariff the Trump administration has imposed on all vehicle imports. Not only will this slow demand for automobiles in the US, but car makers in other countries are likely to moderate production as a result.”
Platinum, palladium and rhodium are used to make autocatalysts for vehicle exhausts to scrub out pollutants. If car and truck sales slow, demand for PGMs will reduce and result in volatile near-term prices.
The Council said it therefore, remains positive about the long term outlook for PGM demand and prices.
Mzila Mthenjane, CEO of the Minerals Council, said “with respect to PGMs, there is an opportunity for increased market development given the potential that remains with internal-combustion engines, the green hydrogen economy and jewellery as well as other yet-to-be-developed technological applications that our members are driving through research. South Africa is the world’s leading source of PGMs, manganese, chrome and vanadium which are all critical as energy metals.”
In 2024, SA exported mineral products estimated at R65,3 billion, dominated by platinum related products (76,3%).
Picture: Anglo Platinum