On April 2 2025, declared “Liberation Day” by US President Donald Trump, the administration unveiled the most extensive tariff increase since the 1930 Smoot-Hawley Tariff Act, a law associated with sparking a global trade war and worsening the Great Depression. A flat 10% tariff on all imported goods was scheduled to begin on April 5, with additional tariffs targeting specific countries rolling out on April 9.
Minerals, though still included under the broad 10% universal tariff, are mostly excluded from the reciprocal tariffs. The administration specifically noted that “energy and certain critical minerals not produced domestically” will be exempt. This suggests a clear acknowledgment by the Trump administration that securing reliable access to these vital resources requires international co-operation, rather than relying solely on protectionist measures.
The following points are worth noting:
- The exemption is designed to be a strategic exemption — the exclusion of certain energy sources and minerals shows a targeted rather than blanket approach to trade policy, signalling their strategic importance.
- It is an acknowledgment of domestic limitations — the administration implicitly admits the US lacks sufficient reserves or production capacity for these resources, necessitating imports.
- There’s a shift in the tone on trade regarding strategic materials. While aggressive tariffs are being introduced, this carve-out suggests a pragmatic understanding that some supply chains must remain open.
- It is a geopolitical signal — the move is designed to reassure key resource-exporting partners that the US is open to
- co-operation in minerals.
So what is the real takeaway? Minerals have become a key lever in economic diplomacy. We're already seeing this play out in places such as Ukraine and the Democratic Republic of Congo, where high-level negotiations are under way, driven largely by the value of their mineral reserves.
Though SA holds substantial reserves of key minerals such as platinum group metals (PGMs), iron ore and manganese, alternative sources exist globally. For example, the US primarily imports iron ore from Brazil and Canada, manganese from Gabon, and has its own PGM deposits. South32 is also now developing a manganese mine in the US. Therefore, while SA’s mineral resources could play a role in strategic partnerships, they can’t serve as the sole foundation for such engagement.
However, there are areas where SA holds a distinct and strategic edge. One key strength lies in its exceptional human capital. The global mining sector is facing a shortage of skilled professionals — an issue that’s particularly pronounced in the US, where only a handful of mining engineering programmes exist. This opens the door for potential workforce exchange initiatives as a form of strategic economic collaboration.
SA firms can play an important role in developing the American mining industry. A prime example is Sibanye-Stillwater, which owns the only PGM mine in the US. This operation supplies a crucial source of palladium to the American semiconductor industry, especially important given that the US’s next largest source — Russia — is a geopolitical rival.
Beyond its strategic value, Sibanye-Stillwater also plays a significant role in the US economy. In 2023 alone its activities in Montana supported about 11,300 jobs and contributed more than $1.1bn in household income to local communities.
SA offers a distinct advantage as the US seeks to strengthen its minerals diplomacy across Africa. With its deep-rooted mining history, the country not only produces many of the essential materials required for mining operations but also brings established infrastructure expertise and a skilled workforce that is already active throughout the continent.
The world has entered a new era for minerals diplomacy — and SA has the potential to play in it effectively if it so chooses.
• Dr Baskaran, a development economist, is founding director of the project on critical minerals security at the Centre for Strategic & International Studies in Washington, DC.
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