Australian multinational South32 has guaranteed that the 25% tariffs on steel and aluminium imports imposed by the United States, which came into force on 12 March, will not have a significant impact on its operations in Mozambique. The information was given by the company’s CEO, Graham Kerr, during the presentation of the half-year results, according to Engineering News.
The US measure, signed by President Donald Trump in a closed-door ceremony at the White House, was justified as a way of protecting industries considered strategically important to the US.
‘The Secretary of Commerce has informed me that steel articles are being imported into the United States in such quantities and under such circumstances that they threaten to jeopardise the national security of the country,’ the presidential proclamation reads.
However, Graham Kerr played down the situation, considering that Washington’s decision seems to be ‘more of a negotiating tool than a long-term policy’. The manager clarified that, from the company’s point of view, the measure will not significantly affect the placing of its products on the market.
South32 operates aluminium production units in Brazil, South Africa and Mozambique, with Mozal Aluminium smelting the Mozambican operations.
Mozal is one of the country’s main economic pillars, generating around 1.1 billion dollars (70.2 billion meticals) in exports in 2023, making aluminium the country’s third largest export product.
Despite having implemented contingency plans to mitigate possible operational impacts resulting from the new tariffs, the company did not provide details of these measures. However, it remains confident in the stability of production in Mozambique and the continuity of its operations without major disruptions.
