Monday

07-21-2025 Vol 2028

Trump’s Shift from Aid to Trade Sparks Concerns Among African Nations

HARARE, Zimbabwe (AP) — U.S. President Donald Trump’s recent meeting with five African leaders in Washington has showcased a significant shift in America’s approach to its relationships with African nations.

During the meeting, Trump’s unfamiliarity with the continent became evident as he praised Liberian President Joseph Boakai’s English, highlighting Liberia’s official language, and even gestured for another leader to conclude their remarks.

At the forefront of the discussion was Trump’s ambitious commitment to reshape U.S.-Africa relations, focusing on transforming aid into trade. This shift arrives at a time when the region is grappling with the consequences of Trump’s steep tariffs and sweeping cuts to aid.

Leaders from African nations presented a variety of resources, offering everything from manganese and uranium to the increasingly sought-after lithium. Interestingly, Senegal’s president attempted to exploit Trump’s affinity for golf by inviting him to consider building a golf course in the country. However, many leaders are left uncertain and anxious about Washington’s evolving strategy.

In May, Troy Fitrell, the top U.S. diplomat for Africa, introduced the term ‘commercial diplomacy’ to describe the new U.S. approach.

This strategy signifies a departure from prioritizing aid-based assistance, which has traditionally governed U.S.-Africa relations. Ambassadors will now be evaluated based on their effectiveness in advocating for U.S. business interests and the number of partnerships they facilitate rather than their success in managing aid projects.

Although Africa constitutes less than 1% of U.S. goods trade, Fitrell argues that it holds potential as ‘the world’s largest untapped market,’ projecting that its purchasing power could exceed $16 trillion by 2050.

The Trump administration is keen to showcase its progress, stating that agreements worth $6 billion have been established within the first 100 days of this new policy, along with an additional $2.5 billion in commitments made during a U.S.-Africa business summit in June.

These agreements cover a wide range of initiatives, including grain storage and digital infrastructure projects in Angola, energy ventures in Rwanda, Sierra Leone, and Congo, as well as tourism projects in Ethiopia.

Nevertheless, apprehensions persist regarding the costs of these initiatives.

Reports indicate increasing job losses and economic distress stemming from the newly imposed tariffs, frequently overlooked even as Washington expresses pride in its accomplishments.

The concept of prioritizing trade over aid has been advocated by African leaders for decades; however, critics argue that the imposition of tariffs and uncertainty surrounding the African Growth and Opportunity Act (AGOA) undermine this intention.

An economic advocacy group, the Alternative Information and Development Centre, voiced concerns, claiming that the tariffs represent a form of economic warfare rather than a fair trade policy.

Trump has introduced a 30% tariff on select South African goods and has threatened an additional 10% for nations aligned with the BRICS bloc.

South Africa’s Automotive Business Council has reported a dramatic plunge in vehicle exports to the U.S., which have dropped over 80%. They have warned that tariffs pose a serious threat to South Africa’s industrialization efforts, placing over 100,000 jobs primarily in the auto and agricultural sectors at risk.

Smaller nations are similarly affected; Lesotho declared a state of disaster after being subjected to 50% tariffs, the second-highest rate after China. A pause on the tariffs granted by Trump is temporary, while about 12,000 textile jobs hang in the balance, as noted by Mokhethi Shelile, the Minister of Trade, Industry, and Business Development.

Various sectors, including vanilla farmers in Madagascar, cocoa growers in Ivory Coast, and oil exporters in Nigeria, have been shaken by these tariffs, raising concerns about the U.S.’s commitment to fair trade practices.

Economist Brendon Verster at Oxford Economics Africa expressed that the U.S. cannot maintain a dual approach, warning that the ‘aid to trade’ strategy risks neglecting Africa once the U.S. has secured its desired critical minerals.

AGOA, enacted in 2000 and renewed in 2015, enables duty-free access for nearly 2,000 goods from 32 African nations.

However, with its expiration approaching in September and no clear indication of renewal, South Africa’s trade minister has cautioned that maintaining AGOA agreements under current conditions would be quite challenging.

Fitrell professed his support for the AGOA initiative but urged African leaders to heighten their lobbying efforts with Congress to ensure its survival. Future arrangements could require a strong focus on reciprocity to align with Trump’s economic objectives.

As American influence fluctuates, China is capitalizing on the situation, proposing zero-tariff policies to enhance its reach within Africa.

In June, China, already Africa’s largest trading partner, announced intentions to extend duty-free access to 53 African nations. Yet, some African leaders remain cautious about deepening ties with China due to potential repercussions from the U.S.

‘Aligning with China,’ Verster noted, ‘could provoke further economic repercussions from the U.S.’

image source from:pbs

Abigail Harper