CSIS Briefs

April 9, 2019

Not only is the trade war spurring China to deepen its long-term investments in Africa as it reduces its dependence on the United States, but it is also being used by Beijing to sow anti-U.S. sentiment among African leaders and publics.

Tariffs Increase Tensions with South Africa

South Africa is the only sub-Saharan African country the United States directly targeted with tariffs, producing some economic anxiety and adding another irritant to perennially difficult U.S.-South African relations. South African companies are on a list of major exporters required to pay a 10 percent tariff on aluminum and 15 percent tariff on certain steel exports to the United States.42 The impacts so far have been minimal, in part because U.S. aluminum purchasers have absorbed extra costs and some categories of South Africa’s steel exports are exempt.43 Nevertheless, the South African stock market and currency buckled when tariffs were initially announced, and investors worry that other major steel and aluminum producers will divert some exports to avoid U.S. tariffs, threatening local South African markets with lower prices.44 Trade analysts also say these tariffs disregard the African Growth and Opportunity Act (AGOA), which currently facilitates the flow of 6,700 South African goods to the United States, potentially weakening its credibility as a tool to attract foreign investment in the long term.45