Mantashe takes swipe at countries threatening to impose higher import tariffs on trade partners

JOHANNESBURG - Mineral and Petroleum Resources Minister Gwede Mantashe has taken a thinly veiled swipe at countries threatening to impose higher import tariffs on trade partners, labelling the threats as bullying.

Mantashe’s concerns about the impact of higher tariffs on miners come ahead of an expected 30% duty on South African products shipped to the US set to take effect at the end of the week.

READ: Mantashe punts critical minerals as a key driver for SA’s economic development, job creation

Speaking at an engagement on the G20 critical minerals framework in Sandton on Tuesday, he called on captains of industry to find alternative markets for the country’s critical minerals.

The US relies on South African metals and minerals that are essential for its economy and national security, making them the biggest South African exports to the US.

But for US President Donald Trump, doing business with the superpower means taking a hard stance - you’re either with the US or you’re against it.

During this year’s instalment of the BRICS meeting in Brazil in June, Trump threatened BRICS allies with higher tariffs on goods into the US, above the universal baseline on all trading partners.

Mantashe said: "We must not be apologetic for initiatives that take us forward, we must never. If being a member of BRICS attracts tariffs from the US, it tells us that we must diversify our markets more and more aggressively and not focus on where tariffs are imposed on us."

Platinum group metals and chrome were on a list of exemptions before the US paused its previous tariff threats, but a levy on diamonds and other minerals raised concerns about lower export earnings for South Africa.

It's unclear at this stage what parameters will apply to the 1 August tariffs.