With the U.S. government imposing tariffs on importation of goods from 145 countries, including Malawi, the mining industry will be heavily affected.
In an interview, Economic Association of Malawi (Ecama) President Bertha Bangara Chikadza said this will minimize export volumes of goods including mining products to the U.S.
Severe Short-Term Shocks
She said, “A 17 percent tariff imposed by the U.S. on Malawian exports would have severe short-term shocks and long-term structural consequences, given Malawi’s reliance on a few key exports (tobacco, tea, sugar, legumes) and products from the newly commissioned
mines and its fragile macroeconomic position.
“A 17 percent tariff would make Malawian exports, including those from the mining industry less competitive compared to other suppliers of similar products who are not facing tariffs like Malawi.”
Mining & Trade Review
By Patrick Lunda
Export Volume May Drop 10% to 20%
Bangara Chikadza, who is senior economics lecturer at University of Malawi, predicted that this could lead to a drop in export volume by 10 to 20 percent.
Coordinator for the Malawi Chamber of Mines and Energy, Dr. Grain Malunga, commented in a separate interview that the move would be irrational for the U.S. because the minerals Malawi is expected to start exporting to the U.S. are essential.
“These are critical minerals for the U.S. I do not think they will be unreasonable to hike the import taxes,” he said.
Loss of Jobs
A U.S.-based Malawian veteran gemologist Mary Kamanga said it would lead to loss of jobs not only for Malawi but also U.S.
“Tariffs affect all raw minerals coming into the U.S. For example, a U.S. company brings critical minerals to U.S.A. for making electric vehicle batteries.”
“You have export tariff plus export costs plus fat U.S.A. tariff 10 to 50 percent.”
Chain of Events
“That then is passed to manufacturer in the U.S., then to customers at each level. However, if the product is not competitive, there is loss of jobs, as manufacturing prices go up, then workers are laid off. And the company goes under,” she said.
GIA Suspends Services
Meanwhile, the Gemological Institute of America (GIA), a laboratory for minerals, has suspended its services with effect from April 5, 2025 following the imposition of the tariffs.
A statement from GIA reads in part: “Tariffs are based on declared value of a shipment and are specific to where the product was manufactured not where the product is shipped from.”
“Due to these circumstances, GIA laboratories outside the United States will temporarily no longer accept items outside the local service criteria that would have been shipped to the U.S. for service. Temporarily, clients outside the U.S. should not send items directly to GIA in the
U.S. for services.”
