US tariffs cloud SA’s iron ore and diamond exports
Share Article
US tariffs cloud SA’s iron ore and diamond exports
The indirect impact on SA’s iron ore and diamond exports is difficult to quantify.
The “reciprocal” tariffs announced earlier this year by the Trump administration exempt South Africa’s PGMs, coal, gold, manganese, chrome and vanadium from the 30% import duty.
However, South African iron ore, unmounted diamonds, metal jewellery and granulated slag are directly subject to the 30% tariff.
Direct impacts minimal
According to Bongani Motsa, senior economist at the Minerals Council South Africa the direct impact of tariffs on South Africa’s iron ore and diamond sectors will be minimal.
“The US market makes up about 0.2% of South Africa’s total iron ore exports in volumes. It is also about 0.2% of total mineral export sales from South Africa.
“South Africa exported R184 million worth of iron ore to the US in 2024. In terms of natural rough diamond exports (carats) to the US, South Africa exported approximately 0.2% of total diamond exports.
“In earnings, that represented 4.7% of our total natural rough diamond exports (or R1.5 billion),” says Motsa in an article published on the WhyAfrica website this morning.
Indirect impacts difficult to quantify
However, Motsa says that the indirect impact of the tariffs on South Africa’s iron ore and diamond sectors will be difficult to quantify.
“US tariffs continue to be the elephant in the room, and it is increasingly used as a foreign policy instrument.
“The tariffs imposed by the US on key South African trading partners including China, the European Union, and India, along with any retaliatory measures they may adopt, will largely influence the demand for South African mineral exports,” he says.
WhyAfrica Explores the Northern Cape
During the upcoming 2025 WhyAfrica Road Trip, we will traverse the vast iron ore and manganese fields of the Northern Cape Kalahari, exploring both challenges and opportunities, promising prospects and established mining operations.
As part of the trip, we’ll follow the trail of these mineral exports as they travel by rail from the dust of the Kalahari to the port of Saldanha on the west coast of South Africa, connecting the Kalahari to global markets in the US, EU and beyond.
Remember, WhyAfrica members will receive exclusive updates, including interviews, site visits, and insights during the road trip ensuring they stay informed about developments shaping the southern African landscape.
To become a WhyAfrica member, click on the link below or visit the WhyAfrica website, your one stop-shop for on the ground information and business intelligence about Africa.
#whyafricaroadtrips #whyafrica #investinafrica #southafrica #ironore #manganese
Image: Kumba’s Sishen Iron Ore mine in the Northern Cape Province of South Africa. Image credit: Graeme Williams for Kumba from Creative Commons.
US tariffs cloud SA’s iron ore and diamond exports
