States, triggering aid cuts by Washington and outbursts from President Donald Trump. Many fear that the African nation could now potentially lose some of its US trade privileges as relations between the two countries deteriorate. South Africa is the largest beneficiary of the African Growth and Opportunities Act (AGOA), a US trade agreement that provides preferential duty-free access to US markets for eligible Sub-Saharan African nations. Some US lawmakers want those benefits withdrawn when AGOA is reviewed this year.

In January, South Africa enacted the Expropriation Act, seeking to undo the legacy of apartheid, which created huge disparities in land ownership among its majority Black and minority White population. Under apartheid, non-White South Africans were forcibly dispossessed from their lands for the benefit of Whites. Today, some three decades after racial segregation officially ended in the country, Black South Africans, who comprise over 80% of the population of 63 million, own only around 4% of private land. The expropriation law empowers South Africa’s government to take land and redistribute it – with no obligation to pay compensation in some instances – if the seizure is found to be “just and equitable and in the public interest.” President Cyril Ramaphosa said the legislation would “ensure public access to land in an equitable and just manner.” But the White House disagrees.

Trump and his South African-born billionaire adviser Elon Musk believe that the land reform policy discriminates against White South Africans. Sanctions have since followed. Responding to a post by Ramaphosa on X about the new legislation, Musk asked: “Why do you have openly racist ownership laws?” In an executive order issued on February 7, Trump revoked all aid for South Africa, accusing the country of human rights violations. He also denounced South Africa’s stance against Israel’s war in Gaza, saying the nation undermined US national interests. The executive order did not specify what aid was being halted but nearly $440 million was committed to South Africa in 2023 – the bulk of which went to its health sector – according to data on the US Foreign Assistance website.