South Africa will seek new markets for its minerals if US imposes high tariffs, minister says

South Africa will need to seek out alternative markets for its critical mineral exports if the United States hits them with steep tariffs, the mines minister of Africa's most developed economy said on Tuesday.

South Africa is by far the world's leading producer of platinum group metals (PGM), which are used in automobile catalytic converters and are among critical minerals subject to an ongoing US probe that could result in new import levies.

Washington launched that probe in part to pressure Beijing.

China is a top global producer of 30 of the 50 minerals considered critical by the US Geological Survey and has been curtailing exports.

'Should never be bullied'

"If the US imposes high tariffs, we must look for alternative markets," Minister of Mineral and Petroleum Resources Gwede Mantashe told reporters on the sidelines of a G20 meeting on critical minerals.

Total South African exports of mineral products and precious metals to the United States were valued at 65.3 billion rand ($3.64 billion) last year. PGMs, largely produced by miners Valterra Platinum and Impala Platinum, accounted for 76.3% of that total.

Other South African exports to the US – its second-biggest bilateral trading partner after China – include gold, diamonds, iron and manganese ores, and coal.

"We should never be bullied for our own resources. If people want to trade with us, it must be in terms that are mutually beneficial to both us and them," Mantashe said.

Fraught relationship

As US President Donald Trump has sought to leverage tariff threats to reshape global trade, South Africa has had a fraught relationship with his administration, which has attacked its domestic race policy and genocide case against Israel.

South Africa's exports to the US are facing the prospect of a 30% baseline tariff from August 1, though PGMs are currently excluded from those levies.

Pretoria is still awaiting a response from Washington to a counter-proposal it submitted last month in hopes of avoiding the 30% rate, South African officials said on Monday.