In the face of Trump’s high tariffs, Africa’s leading economy says it is closing in on a new trade deal with China

CAPE TOWN, South Africa (AP) — China and South Africa signed a framework agreement for a new trade deal on Friday as Africa’s leading economy looks to other options in the wake of high import tariffs imposed on it by the United States and its diplomatic fallout with the Trump administration.

South Africa’s Department of Trade and Industry said the agreement would begin negotiations on a deal that would give some South African goods, such as fruit, duty-free access to the Chinese market. The ministry said it expects to finalize the trade agreement by the end of March.

In return, the Ministry of Commerce said that China will receive enhanced investment opportunities in South Africa, where its car sales have witnessed rapid growth.

The United States has imposed 30% tariffs on some South African goods under President Donald Trump’s reciprocal tariff policy, one of the highest rates applied worldwide. South Africa said it was still negotiating with the United States to reach a better agreement.

The deal between China and South Africa comes in the wake of others searching for alternatives to the US partnership in the face of Trump’s aggressive trade policies.

China is already South Africa’s largest trading partner in terms of imports and exports, while Chinese economic influence across the African continent continues to grow and dominates the extraction of critical minerals in Africa that form key components of new high-tech products.

“South Africa looks forward to working with China in a friendly, pragmatic and flexible manner,” the Department of Trade said.

Trade and Industry Minister Park Tao, who traveled to China to sign the agreement, said the agreement would benefit South Africa’s mining, agriculture, renewable energy and technology sectors.

Diplomatic relations between the United States and South Africa have fallen to their worst levels in decades after the Trump administration accused South Africa of pursuing an anti-US foreign policy and allowing violent persecution of a white minority at home. The South African government has dismissed as baseless allegations that white Afrikaner farmers are being killed in a widespread attempt to seize their land.

Trump also banned South Africa from participating in the G20 meetings of rich and developing countries this year in the United States.

South Africa’s largest exports to China are gold, iron ore and platinum group metals, while Chinese cars have rapidly increased their market share in South Africa. Industry groups estimate that Chinese brands grew from about 2.8% of the South African market in 2020 to between 11% and 15% last year.

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