Trump Threatens to Cut US Aid to South Africa Over Land Law
TLDR
- Former US President Donald Trump announced plans to halt all future US funding to South Africa
- Trump cited concerns over its new land expropriation law, causing the rand to weaken 2% before partially recovering
- The US has provided $8 billion in bilateral aid to South Africa in the past two decades
Former US President Donald Trump announced plans to halt all future US funding to South Africa, citing concerns over its new land expropriation law, causing the rand to weaken 2% before partially recovering. South African President Cyril Ramaphosa signed the Expropriation Act last month, allowing the state to seize land in the public interest, in some cases without compensation.
Trump, on his Truth Social platform, accused South Africa of "confiscating land and treating certain people very badly", demanding an investigation. South Africa's foreign minister defended the law, comparing it to US and UK eminent domain principles. The law replaces a 1975 apartheid-era policy and aims to address land ownership disparities.
The US has provided $8 billion in bilateral aid to South Africa in the past two decades, mostly for HIV/AIDS programs. Trade between the nations totaled $23.7 billion in 2023. Some US lawmakers have called for a trade review, citing South Africa’s ties with China and Russia.
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Key Takeaways
Trump’s threat to cut aid and impose tariffs highlights growing tensions between Washington and Pretoria. While land reform remains controversial, the Expropriation Act aligns with global eminent domain laws. However, the uncertainty could affect US-South Africa trade, particularly as Trump signals a tougher stance on BRICS nations. If Trump returns to office, South Africa could face economic pressure, including trade restrictions or funding cuts, as US policymakers push back against Pretoria’s diplomatic alliances with China and Russia.
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