President Donald Trump said he would halt U.S. aid to South Africa over its land expropriation policies, sending the country’s currency tumbling.
Why it matters
The U.S. has provided over $8 billion in aid to South Africa in the past two decades, much of it for HIV/AIDS programs.
Trump’s stance could strain U.S.-South Africa relations, especially as the country chairs the G20 this year.
What happened
- Trump posted on Truth Social that the U.S. “won’t stand for” South Africa’s land policies and would cut funding until a full investigation is conducted.
- His comments come after President Cyril Ramaphosa signed a law easing land expropriation with equitable compensation, aiming to address historical land ownership disparities.
- The South African rand dropped 2% against the dollar in Asian trading.
The bigger picture
- Trump has long been critical of South Africa’s policies and its BRICS alliance, previously threatening tariffs if the bloc moved away from using the U.S. dollar.
- Emerging markets also felt the pressure, as Trump imposed new tariffs on China and Mexico.
- South Africa’s political ties to the U.S. could face further strain, even as billionaire Elon Musk—one of Trump’s biggest backers—hails from the country.
Source: Yahoo News
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