South Africa’s top foreign policy official is accusing the United States of jeopardizing a trade agreement by demanding reforms to controversial domestic policies. With the August 1 deadline for a deal fast approaching, Director-General Zane Dangor claimed U.S. focus on “non-trade” issues—specifically Black Economic Empowerment (BEE)—is the primary obstacle to reaching an agreement.
Without a deal, South African exports will face a 30% tariff, plus an additional 10% penalty applied to members of the BRICS alliance, which includes South Africa. The penalties stem from what U.S. officials view as anti-American policies and alliances.
Despite claiming to seek a trade agreement, Dangor continues to push positions that directly undermine U.S. interests. Earlier this month, he gave a speech to the “Hague Group,” a coalition of far-left and authoritarian governments, accusing Israel of genocide and war crimes. South Africa’s alignment with regimes hostile to U.S. allies has intensified scrutiny in Washington.
South Africa has also downgraded Taiwan’s diplomatic presence in the country and is reportedly considering renting or selling Pretoria’s city hall to the Iranian regime for exclusive use. These moves further complicate the trade relationship.
Domestically, South Africa has failed to reform the Expropriation Act, which allows the government to seize white-owned farmland without compensation. The U.S. has long objected to this policy, with President Donald Trump addressing the issue during his first term. Additionally, the BEE policy remains unchanged, favoring politically connected elites while doing little to alleviate poverty.
Dangor claimed Tuesday that South Africa is making “all the right arguments” on trade but expressed concern over American “demands” on domestic sovereignty. He said the U.S. has made it clear that BEE reform is a priority. Despite these tensions, South Africa has yet to appoint a new ambassador to Washington, after the previous ambassador was expelled for publicly criticizing President Trump.
