This week brought news of South Africa crafting a fresh trade proposal aimed at catching the interest of President Trump. The goal? To play into his preference for transactional diplomacy and hopefully calm the brewing storm with Washington, according to Vincent Magwenya, a spokesperson for South Africa’s president.
In conversation, Magwenya revealed that South African leaders are bracing for Trump to potentially push for terminating the African Growth and Opportunity Act. This is a longstanding trade pact that significantly benefits 32 African nations, South Africa included.
This act has historically allowed a vast array of goods — ranging from agricultural produce to automobiles — from sub-Saharan Africa to enter the U.S. without facing duties. Although slated to end this year, there’s still a chance Congress could extend it.
Despite South African officials holding out hope for an extension, they are also preparing to present the United States with an offer. This would be a direct trade agreement focusing on boosting sectors like energy, Magwenya commented.
Losing the African Growth and Opportunity Act would mark a major turning point for South Africa’s economy, the largest in Africa. For years, the country has countered threats of exclusion due to the perception that its economy no longer requires this support.
South African officials contend that the trade act has been a cornerstone, instilling confidence in their economy, ensuring stability across Africa, and maintaining solid relations with the U.S.
However, tensions skyrocketed last month when Trump criticized South Africa for a new land reform law he claimed was discriminatory against white landowners. President Cyril Ramaphosa retorted, accusing Trump of peddling falsehoods.
The contentious land bill allows for uncompensated seizure of private land, though proponents argue such actions would be rare and face stringent judicial scrutiny.
In retaliation, Trump issued an executive order halting American aid to South Africa. The order also took issue with Ramaphosa’s administration over charges regarding Israel in Gaza and South Africa’s dealings with Iran on nuclear matters.
Since Trump signed the order, South African leaders have been contemplating their next steps. They’ve decided that pursuing a restructured trade pact with the U.S. — their second-largest trade partner after China — might help thaw relations.
“When emotions are set aside, you notice there’s a real opportunity to mend the ties,” Magwenya noted. “There’s significant trade potential to explore.”
One strategy on the table involves enhancing gas sector collaboration. The U.S. would gain greater access to gas explorations in South Africa, while South Africa would increase its gas imports from America. Details regarding fair tariffs are also under consideration, Magwenya explained.
Still, South Africa faces considerable hurdles in convincing Trump to embrace a new trade deal. Last week, Emma Louise Powell, a South African lawmaker, briefed on her visit to Washington. She mentioned hearing warnings of further punitive measures from the U.S.
Powell led a delegation from the Democratic Alliance, the second-largest partner in South Africa’s ruling coalition. While unofficial, the mission aimed to dial down tensions and uncover ways to mend U.S.-South Africa relations, Powell recounted.
The meetings remained inconclusive, she shared, but it was evident that rebuilding trust would require considerable effort.
During President Joseph R. Biden Jr.’s administration, bipartisan calls urged U.S. officers to reprimand South Africa over its foreign policy, including connections with Hamas and Russia. Criticism also came for South Africa’s endorsement of Iran joining BRICS, a group with Brazil, Russia, India, China, and South Africa.
The Trump administration advanced its exasperation by supporting some white South Africans who claim discrimination from post-apartheid laws.
Magwenya vows that alongside presenting a trade deal, South Africa will tackle contentious issues like the land bill with the Trump administration. South African officials foresee that securing favorable economic terms could convince Trump that it is beneficial for the U.S. to maintain strong trade ties, irrespective of policy disagreements.
In 2023, South Africa exported $13.9 billion in goods to the U.S., with nearly a quarter benefiting from the African trade initiative. Conversely, while importing $7.2 billion from the U.S., South Africa remains the largest purchaser of American goods in sub-Saharan Africa.
