South Africa’s natural diamond industry has been caught in the crosshairs of a 30 percent import tariff imposed by the United States, prompting urgent calls for a global marketing push to revive the sector.
Mineral and Petroleum Resources Minister Gwede Mantashe on Tuesday convened a stakeholder consultation in Pretoria during which he urged producers to collaborate on strategies to counter declining demand and competition from lab-grown diamond – particularly in Western markets.
Unlike gold, platinum group metals and coal – which were exempted from the new US tariff regime – South Africa’s natural diamonds remain subject to the full 30 percent duty, dealing a blow to one of the country’s most iconic export sectors.
The US is South Africa’s second-largest trading partner after China.
The minister warned that the tariff would make South African diamonds less competitive in the American market where lab-grown diamonds now account for roughly 25 percent of trade.
He called for increased production, value addition through cutting and polishing and a coordinated international marketing campaign to reposition natural diamonds in premium markets.
“We must market natural diamonds, but we must produce more natural diamonds, and the beneficiation thereof is quite critical,” Mantashe said.
South Africa has long been a global leader in diamond mining, with historic sites like Kimberley and Cullinan contributing to its reputation.
However, the sector has faced headwinds from synthetic alternatives, shifting consumer preferences and the latest punitive trade measures.
JN/APA