South Africa may be compelled to redirect its mineral exports towards new markets if the United States imposes elevated tariffs on its critical minerals, according to Minister of Mineral and Petroleum Resources, Gwede Mantashe. His remarks come amid heightened international tensions surrounding the global supply of strategically significant commodities.
The United States is currently conducting an investigation into the national security implications of importing certain critical minerals, a process that may culminate in new trade levies. While the scope of these prospective tariffs remains under review, their impact could be significant for South Africa, the leading global supplier of platinum group metals (PGMs). These metals — including platinum, palladium, and rhodium — are extensively utilised in catalytic converters and low-emission automotive technologies.
Speaking on the sidelines of the G20 summit on critical minerals, Mantashe affirmed South Africa’s commitment to safeguarding its trade interests. “If the U.S. imposes high tariffs, we must look for alternative markets,” he stated. He added that South Africa “should never be bullied for our own resources”, underscoring a principled stance on resource sovereignty and equitable trade.
According to data from South Africa’s Department of Trade, Industry and Competition, mineral products and precious metals exported to the United States in 2024 were valued at R65.3 billion (approximately $3.64 billion). Of this, PGMs accounted for 76.3%, with major producers such as Valterra Platinum and Impala Platinum dominating production. Other key mineral exports include gold, diamonds, coal, iron ore, and manganese.
While the United States has not yet included PGMs in its planned 30% baseline tariff — expected to take effect from 1 August — Pretoria remains wary of potential economic consequences. In response, the South African government submitted a counter-proposal in June 2025, aimed at averting punitive trade measures. As of this publication, Washington has not formally responded to the proposal.
The broader context of the investigation is influenced by escalating trade friction between the United States and China. The U.S. Geological Survey identifies 50 minerals as critical to its economic and national security; China is a leading global supplier of 30 of these. Amid recent curbs on mineral exports by Beijing, Washington is reassessing its supply chain dependencies and trade arrangements.
The prospect of new tariffs adds complexity to an already strained relationship between South Africa and the current U.S. administration. Under President Donald Trump, bilateral relations have been tested by disputes over domestic policy, including Pretoria’s land reform initiatives and its legal action at the International Court of Justice against Israel, which the U.S. has publicly criticised.
South Africa’s trade portfolio remains globally integrated, with the United States as its second-largest trading partner after China. The evolving situation highlights the country’s imperative to diversify its trade relationships while defending national interests in global markets.
South African officials, including representatives from the Department of International Relations and Cooperation, have reiterated their preference for a diplomatic resolution. Nevertheless, contingency strategies are being explored to mitigate the risk of economic disruption should negotiations fail.
