South Africa’s trade relations with the United States, its second-largest trading partner, face potential deterioration as the country prepares to assume the G20 Presidency and the US Congress considers changes to the African Growth and Opportunity Act (AGOA).
The tensions intensified after US President Donald Trump signed an Executive Order on Friday, cutting funding to South Africa over its land expropriation policy and announcing plans to resettle white South African farmers who could be affected by the law.
Without presenting evidence, Trump accused South Africa’s government of “egregious actions”, claiming that the recently enacted Expropriation Act 13 of 2024 would unfairly seize Afrikaner-owned agricultural property without compensation.
US Considers More Measures Against South Africa
According to Professor Michael Walsh, a senior fellow at the Foreign Policy Research Institute, the Trump administration is determined to reshape US-South Africa relations.
“They seem to think that South Africa is quickly becoming a lost cause. To try to avoid that outcome, they are willing to shake the relationship to its core,” Walsh stated.
He added that some US policymakers have advocated for extreme measures, including:
- Expelling the South African Ambassador from Washington
- Imposing a SWIFT ban on South African banks
- Designating South Africa as a State Sponsor of Terrorism
However, these proposals remain controversial within US policy circles, with congressional committees showing reluctance to take actions that might sever ties completely or destabilize South Africa’s Government of National Unity (GNU).
Instead, more moderate steps are gaining traction, such as:
- Revoking South Africa’s eligibility for AGOA trade benefits
- Imposing Global Magnitsky sanctions on South African individuals and entities
The absence of US Secretary of State Marco Rubio from the upcoming G20 Summit in Johannesburg further raises concerns over the future of high-level diplomacy between the two nations.
US-South Africa Rift Deepens Over Israel and Iran
Trump’s Executive Order also cites South Africa’s legal action against Israel at the International Court of Justice (ICJ) as a key reason for the US decision.
The Biden administration had previously been critical but measured in its response to South Africa’s genocide case against Israel, but Trump’s White House has taken a more aggressive stance. The US has also expressed alarm over South Africa’s growing ties with Iran, including military and nuclear cooperation agreements.
South Africa Rejects US Claims, Calls for Diplomacy
The Department of International Relations and Cooperation (DIRCO) strongly rejected Trump’s accusations, calling them factually inaccurate and warning of a misinformation campaign aimed at South Africa.
“It is disappointing to observe that such narratives seem to have found favor among decision-makers in the United States of America,” DIRCO said in a statement.
South Africa also criticized the US offer to resettle white South African farmers, calling it hypocritical given Washington’s strict immigration policies against vulnerable refugees from other countries.
“It is ironic that the executive order makes provision for refugee status in the US for a group in South Africa that remains among the most economically privileged, while vulnerable people in the US from other parts of the world are being deported and denied asylum despite real hardship,” DIRCO added.
Despite the escalating diplomatic crisis, South Africa reaffirmed its commitment to finding diplomatic solutions and maintaining trade and political ties with the United States.