Following Trump’s remarks, the South African rand dropped nearly 2% against the dollar in early Asia trading.
- U.S. President Donald Trump announced the halt of aid to South Africa due to its land expropriation policies.
- Trump claimed that ‘certain classes of people’ in South Africa were being treated ‘very badly’ without providing evidence.
- Trump’s comments led to a nearly 2% drop of the South African rand against the dollar in early Asia trading.
U.S. President Donald Trump announced that the U.S. would halt aid to South Africa over its land expropriation policies, causing the rand to drop.
The United States allocated nearly $440 million in assistance to South Africa in 2023, according to the most recent U.S. government data, an amount that holds significance even for Africa’s most industrialized economy.
Trump claimed, without providing evidence, that “certain classes of people” in South Africa were being treated “very badly”.
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What Trump said:
“The United States won’t stand for it, we will act,” Trump said in a Sunday evening post on Truth Social. “Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”
Trump’s comments come less than two weeks after South African President Cyril Ramaphosa signed a new law making it easier for the state to expropriate land in the public interest, requiring only equitable compensation, Bloomberg reported.
The legislation seeks to address racial disparities in land ownership that have persisted since the end of apartheid in 1994.
The African National Congress (ANC), South Africa’s ruling party, has long advocated for reforms to address racially skewed land ownership, a legacy of colonialism and White-minority rule.
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Following Trump’s remarks, the South African rand dropped nearly 2% against the dollar in early Asia trading.
This isn’t the first time Trump has threatened South Africa with economic consequences. In December, he warned of a 100% tariff on BRICS nations—including South Africa—if they moved away from the U.S. dollar.
As the current G-20 chair, South Africa is set to host key global discussions this year, with Trump expected to attend if he returns to the U.S. presidency. Notably, his top billionaire supporter, Elon Musk, was born in the country.
