South Africa races to avoid US tariffs as Billions hang in the balance

Africa on Edge: Trade Tensions and Sudanese Crisis Raise Geopolitical Stakes

Aug 5, 2025 - 08:21
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South Africa races to avoid US tariffs as Billions hang in the balance
South African Pres, Cyril Ramaphosa (left) and American Pres, Donald J Trump (right)

South Africa is racing against time to avoid potentially devastating US trade tariffs, as shifting global politics threaten to cost the country billions in export revenue. At the same time, the African Union (AU) has firmly rejected the formation of a rival government by Sudan’s Rapid Support Forces (RSF), urging national unity and peaceful negotiations to prevent the country from descending further into fragmentation.

South African officials are reportedly in urgent talks with their US counterparts to maintain the country’s favourable trade status under the African Growth and Opportunity Act (AGOA). The US is reviewing South Africa’s eligibility amid growing concerns over its perceived alignment with Russia and China, as well as its stance on global conflicts, including the war in Ukraine.

Analysts warn that losing AGOA privileges could inflict severe damage on key South African industries, particularly automotive, agriculture, and textiles, which rely heavily on tariff-free access to the US market. The stakes are high, with billions of rands in exports hanging in the balance.

“We are committed to addressing all concerns raised by our partners in Washington,” a senior South African trade official said. “South Africa values its strategic economic relationship with the United States and is doing all it can to ensure continuity.”

Meanwhile, in a separate but equally significant development on the continent, the African Union has rejected the RSF’s recent declaration of a rival government in Sudan’s western Darfur region. The RSF, a powerful paramilitary force locked in a brutal conflict with Sudan’s army since April 2023, announced the formation of a government last week, fuelling fears of a formal split in the country.

In a strong statement, the AU called the RSF’s move “unacceptable” and urged all factions to return to the negotiation table. The continental body stressed the importance of preserving Sudan’s unity and territorial integrity.

“The African Union rejects any unilateral actions that risk further disintegration of Sudan,” the AU Peace and Security Council said. “Only an inclusive political dialogue can bring lasting peace to the country.”

The AU’s response has been echoed by regional powers and the United Nations, all of whom fear that a divided Sudan could plunge the region into deeper instability, with spillover effects across the Sahel and Horn of Africa.

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