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Home Business & Economy

South Africa’s Ramaphosa Seeks to Defuse Trump’s Trade Tensions

May 21, 2025
in Business & Economy
Reading Time: 3 mins read
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South African President Cyril Ramaphosa arrived at the White House on Wednesday for a critical meeting with U.S. President Donald Trump, aiming to mend strained relations and secure economic ties in the face of escalating tensions.

The visit comes as Trump’s second term has seen sharp criticism of South Africa’s policies, resulting in punitive measures that threaten the nation’s economy and global standing.

Trump had targeted South Africa’s land reform laws, designed to address historical injustices from apartheid, and its genocide case against Israel at the International Court of Justice.

In response, he has canceled U.S. aid, expelled South Africa’s ambassador, and offered refuge to white Afrikaners, citing claims of racial discrimination that Pretoria firmly denies.

These actions have already disrupted critical programs, including HIV testing, exacerbating challenges for South Africa, where the U.S. is the second-largest trading partner after China.

We are joined at the hip, whether we like it or not, Ramaphosa said on South African state television before departing for Washington. His delegation, which includes Agriculture Minister John Steenhuisen, luxury goods magnate Johann Rupert, and champion golfers Ernie Els and Retief Goosen, is poised to pitch trade deals and investment opportunities to counter Trump’s aggressive stance.

The inclusion of Rupert, founder of Richemont (owner of Cartier), and golfers who have previously played with Trump is seen as a strategic move to foster a friendlier atmosphere.

Ramaphosa’s agenda includes a broad trade deal, with specific proposals such as duty-free access for Tesla electric vehicles in exchange for the company building charging stations in South Africa, and potential licensing for Elon Musk’s Starlink.

Musk, a South African-born billionaire and a key figure in Trump’s circle, has accused Ramaphosa of anti-white policies, allegations the South African government rejects. Agriculture Minister Steenhuisen is focused on preserving and expanding duty-free access for South African farmers under the African Growth and Opportunity Act (AGOA), which faces a potential 30% tariff under Trump’s proposed trade regime.

On the U.S. side, Trump, to be joined by Vice President JD Vance and Musk, is expected to demand exemptions for American companies from South Africa’s affirmative action policies, which the White House refers to as “racial requirements.”

South African media reported that Rupert, South African billionaire founder of the Richemont luxury goods group, and Els Els, a former world number one golfer and four-time major champion, played pivotal roles in arranging the meeting, leveraging their personal connections with Trump.

However, neither responded to requests for comment. Ramaphosa’s spokesperson expressed confidence to News24 that the South African leader would avoid the “Zelenskiy-style treatment” seen in prior talks.

WHAT YOU SHOULD KNOW

With South Africa’s economy and U.S. relations hanging in the balance, the outcome of these discussions could shape the nation’s trade prospects and diplomatic ties.

ALSO READ TOP STORIES FROM VERILY NEWS

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