South Africa Works to Reset Trade Relations Amid Trump Tensions

South Africa is actively seeking to reset its trade relations with the United States, which have been under strain since Donald Trump returned to the White House. Pretoria is working on a bilateral trade agreement as a contingency plan in case it loses preferential access under the African Growth and Opportunity Act (AGOA).

Challenges in Diplomatic Relations

The South African government is also taking steps to bolster its diplomatic presence in Washington, following the expulsion of its ambassador earlier this month. To further strengthen ties, a South African business delegation visited New York this week to meet with US companies operating in South Africa. They aim to prepare for the potential loss of duty-free access to the US market, which could have severe economic consequences.

Trump’s Criticism and Its Impact on the Rand

Trump’s actions have significantly affected the diplomatic relationship between the two countries. His objections include South Africa’s genocide case against Israel at the International Court of Justice and claims about land seizures from White farmers. South Africa has denied these claims, emphasizing that no land has been confiscated since 1994. Despite the tensions, the South African rand has shown resilience, appreciating 3.2% against the dollar in 2023, benefiting from a general dollar weakness.

AGOA and Future Trade Relations

AGOA, which grants South Africa duty-free access to the US for thousands of goods, is a cornerstone of the trade relationship. South Africa exported $14 billion in goods to the US in 2023, making the US its second-largest trade partner. However, the future of AGOA is uncertain, and Pretoria is proactively preparing a bilateral agreement in case the US revokes South Africa’s participation.

Andrew Whitfield, South Africa’s Deputy Trade, Industry, and Competition Minister, emphasized that securing continued preferential access is a priority while simultaneously preparing for the possibility that AGOA could be scrapped or terminated for South Africa.

Diplomatic Measures and Future Appointments

Amidst the diplomatic fallout, South Africa is considering replacing its expelled ambassador, Ebrahim Rasool, with a White Afrikaner diplomat. This move aims to counter the false narrative, perpetuated by Elon Musk, that White South Africans are being persecuted by the government. Musk, a prominent South African-born billionaire, has been vocal about his concerns over Black economic empowerment legislation in South Africa, particularly criticizing the country’s ownership laws.

Very few people know that there is a major political party in South Africa that is actively promoting white genocide.

The video below was just yesterday. A whole arena chanting about killing white people.

A month ago, the South African government passed a law legalizing… https://t.co/GHYp6DvGkr

— Elon Musk (@elonmusk) March 22, 2025

South Africa is determined to navigate these diplomatic challenges and preserve its critical trade and investment relations with the US. As tensions persist, Pretoria will continue its efforts to secure favorable trade terms and ensure a strong presence in the global market. The outcome of these initiatives will be crucial for maintaining South Africa’s economic stability and its position as a key player in the African economy.

{Source Bloomberg}

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