South Africa is preparing to present a new trade offer to President Trump, aiming to address ongoing tensions with Washington, according to a statement from a spokesman for South Africa’s president.
Spokesman Vincent Magwenya mentioned that South African officials expect Trump may push to end the African Growth and Opportunity Act (AGOA), a longstanding trade agreement beneficial to 32 African nations. The AGOA allows for billions of dollars of goods—from produce to vehicles— from sub-Saharan Africa to enter the United States duty-free, and is set to expire this year but could potentially be reauthorized by Congress.
While South African officials hope for the program's renewal, they are also planning to propose a bilateral trade deal aimed at enhancing sectors such as energy, as stated by Magwenya.
The potential expiration of AGOA would mark a significant change for South Africa, which has lobbied against threats of expulsion from the program due to its more advanced economy. Officials assert that AGOA has fostered confidence in the South African economy, promoted stability across the continent, and strengthened relations with the United States.
Relations between South Africa and the United States deteriorated last month after Trump accused South Africa of discrimination against white citizens through new land laws. In response, President Cyril Ramaphosa criticized Trump for disseminating misinformation, as the land bill permits the government to expropriate land without compensation, although supporters assert such actions will be rare and subject to judicial review.
In light of the escalating tensions, Trump signed an executive order to freeze American aid to South Africa, which also condemned Ramaphosa’s government for its stance towards Israel and its nuclear agreement with Iran.
Since the executive order, South African leaders have been deliberating over their response, ultimately deciding that a renegotiated trade deal with the U.S.—its second-largest trading partner after China—could help improve relations. Magwenya suggested that there is an opportunity to reset the bilateral relationship, emphasizing the potential for substantial trade collaboration.
One proposal under consideration involves increasing U.S. access to gas exploration in South Africa, and facilitating South Africa's gas imports from the U.S. This would also include discussions about mutually agreeable tariff structures.
However, obstacles to achieving a favorable trade deal remain. Lawmaker Emma Louise Powell, who recently met with the Trump administration and Congress, reported warnings about potential further punitive actions against South Africa.
Powell led a delegation from the Democratic Alliance, South Africa’s second-largest political party, with the goal of de-escalating tensions and exploring ways to mend relations with the U.S. While the delegation did not receive clear guidance, Powell noted that rebuilding trust would require considerable efforts.
Under President Biden, calls from lawmakers to penalize South Africa for its foreign policy, including ties to Hamas and Russia, have intensified. Additionally, South Africa's support for Iran's bid to join the BRICS economic coalition has faced criticism.
The Trump administration's discontent with South Africa has been reflected in its support for certain white South Africans who claim they face discrimination due to laws addressing racial inequalities stemming from apartheid.
Magwenya indicated that alongside a trade deal, South Africa intends to discuss other contentious matters, including the land bill, with the Trump administration. Officials believe a favorable economic agreement could persuade Trump of the benefits of maintaining strong trade relations, despite existing policy disagreements.
In 2023, South Africa exported approximately $13.9 billion worth of goods to the U.S., with about a quarter benefiting from the AGOA. Conversely, it imported $7.2 billion from the U.S., making it the largest recipient of American goods in sub-Saharan Africa.