South African Stocks Tumble Most in Five Years on US Tariff Hit
The FTSE/ JSE Africa Africa All Share Index fell as much as 4.5% in Johannesburg, its biggest drop since March 2020. Banks were the biggest drag by index points, while other South Africa Inc. sectors including telecommunications, personal care, retail and life insurance also took a hit.
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Yahoo
4 hours ago
- Yahoo
G-20 Communique Delivers Rare Show of Unity Amid Trump Trade War
(Bloomberg) -- The Group of 20 finance ministers and central bank chiefs committed to international policy cooperation in a communique adopted on Friday, finding rare consensus amid escalating tensions over the US trade war. The Dutch Intersection Is Coming to Save Your Life Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say 'The global economy is facing heightened uncertainty and complex challenges, including ongoing wars and conflicts, geopolitical and trade tension,' the communique said. 'We emphasize the importance of strengthening multilateral cooperation to address existing and emerging risks to the global economy.' The agreement, forged during the G-20 summit in South Africa's eastern KwaZulu-Natal province, was reached despite simmering tensions over US President Donald Trump's trade war, which is set to intensify when higher tariffs take effect on Aug. 1. They have strained the G-20's multilateral foundations and complicated South Africa's efforts — as this year's rotating president — to keep the group's agenda on course. 'The fact that all members consented to language covering debt relief, climate finance, tax cooperation, and financial stability during such a period demonstrates the success of the approach that we have adopted,' said South African Finance Minister Enoch Godongwana. It was the first G-20 communique this year. Tariffs were not explicitly mentioned in the five-page document. But Godongwana played that down, noting it was a relatively recent issue 'and in any case I feel that our discussion on the broad number issues affecting global growth have included the range of risk to economic growth, without singling out tariffs.' The G-20 communique did note the importance of the World Trade Organization to advance trade issues, while adding that it recognized 'the WTO has challenges and needs meaningful, necessary, and comprehensive reform to improve all its functions.' 'Central Bank Independence' Officials also sided with Federal Reserve Chair Jerome Powell, who Trump has excoriated for opposing him by not lowering interest rates, out of concern the levies could spur inflation. 'Central banks are strongly committed to ensuring price stability, consistent with their respective mandates, and will continue to adjust their policies in a data-dependent manner,' the communique said. 'Central bank independence is crucial to achieving this goal.' South African Reserve Bank Governor Lesetja Kganyago told reporters at a closing press conference that the issue of independence 'came out strongly in the conversation.' Powell did not attend this G-20, with the Fed being represented by Vice Chair Philip Jefferson. The communique also included a prominent reference to 'frequent extreme weather events and natural disasters' which impact economic growth, financial and price stability.' Climate-change language has been a sticking point with the Trump administration in the past. US Treasury Secretary Scott Bessent skipped the event in favor of a trip to Japan, but Washington still sent a delegation to represent its interests. 'Major Achievement' By imposing trade levies, scorning South Africa's G-20 motto of 'solidarity, equality and sustainability' and pulling billions of dollars in funding for climate finance and international aid, the US is testing a world order that has dominated since the end of World War II. That makes achieving a communique all the more impressive, said German Finance Minister Lars Klingbeil prior to its adoption. 'This is a major achievement for the G-20 presidency, which has conducted these negotiations with prudence and skill,' he told reporters at the gathering, at a lush resort on the Indian Ocean near the port city of Durban. Issuing the communique sends 'a strong signal in favor of multilateralism,' he said. Still, tariff uncertainty has dented global economic growth. The International Monetary Fund in April cut its projection for 2025 to 2.8% from a January forecast of 3.3% and IMF First Deputy Managing Director Gita Gopinath, who attended the G-20, said that while financial conditions have improved, vigilance was important. 'While we will update our global forecast at the end of July, downside risks continue to dominate the outlook and uncertainty remains high,' she said in a statement as the gathering concluded. Sign up here for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen. --With assistance from Matthew Hill, Erica Yokoyama and Fran Wang. (Updates with comments from IMF's Gopinath in final paragraph.) What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover A Rebel Army Is Building a Rare-Earth Empire on China's Border Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P. Sign in to access your portfolio
San Francisco Chronicle
5 hours ago
- San Francisco Chronicle
Trump's pivot from aid to trade leaves Africa wary as it faces tariffs and uncertainty
HARARE, Zimbabwe (AP) — When U.S. President Donald Trump met five African leaders in Washington in July, his lack of familiarity with the continent was on display. He praised Liberian President Joseph Boakai's English — Liberia's official language — and gestured at another leader to wrap up remarks. But the bigger takeaway was Trump's pledge to transform U.S.-Africa relations: a shift from aid to trade, even as the region reels from steep tariffs and sweeping aid cuts. African leaders offered minerals from manganese to uranium and possibly lithium. Senegal's president even sought to leverage Trump's love of golf by inviting him to build a course. Yet many nations are anxious about Washington's new path. After slashing billions in foreign aid, including shutting down the U.S. Agency for International Development — which provided over $12 billion in humanitarian assistance in 2025 alone — the Trump administration says it is forging a new approach: 'commercial diplomacy.' Trade, not aid, is the order of the day. 'It is now truly our policy for Africa,' said Troy Fitrell, the top U.S. diplomat for Africa, when announcing the strategy in Abidjan, Ivory Coast, in May. Ambassadors will now be judged not by aid projects but on 'how well they support' local businesses and 'how effectively they advocate for U.S. business and the number of deals they facilitate,' he said. Africa accounts for less than 1% of U.S. goods trade, but Fitrell called it 'the world's largest untapped market,' projecting its purchasing power could surpass $16 trillion by 2050. Early deals, lingering doubts Washington touts quick progress: 33 agreements worth $6 billion in Trump's first 100 days, plus $2.5 billion in commitments at a U.S.-Africa business summit in June. Projects span grain storage and digital infrastructure in Angola, energy ventures in Rwanda, Sierra Leone and Congo, and tourism in Ethiopia. Still, many worry about the costs. Job losses and economic pain from tariffs are mounting even as Washington celebrates these wins. Trump did not invent the idea of trade over aid. African leaders have pushed for this since the 1970s. The problem, critics say, is the caveat: steep tariffs and uncertainty over the African Growth and Opportunity Act (AGOA), the U.S. flagship program for trade with the continent. 'In reality, these tariffs are not about trade balances. It's economic warfare,' said the Alternative Information and Development Centre, a South African NGO. Fears that jobs could go Trump has imposed a 30% tariff on selected South African goods and threatens another 10% for nations aligned with the BRICS bloc of developing economies. South Africa's Automotive Business Council says vehicle exports to the U.S. have plunged over 80%, warning that tariffs 'strike at the heart of South Africa's industrialization agenda.' More than 100,000 jobs, mostly in auto and agriculture, are at risk, the council says. Smaller nations are also reeling. Lesotho declared a state of disaster after being hit with 50% duties — the second-highest rate after China — before Trump announced a 90-day pause. About 12,000 textile jobs hang in the balance, according to Lesotho's Minister of Trade, Industry, and Business Development, Mokhethi Shelile. From vanilla farmers in Madagascar to cocoa growers in Ivory Coast and oil exporters in Nigeria, tariffs have shaken economies and raised doubts about Washington's intent. 'The U.S. certainly can't have it both ways,' said Bester Brendon Verster, an economist at Oxford Economics Africa. 'The 'aid to trade' stance risks leaving Africa behind once the U.S. has gotten what it wanted, which will probably be critical minerals." An agreement on the brink AGOA, enacted in 2000 and renewed in 2015, allows duty-free U.S. access for nearly 2,000 goods from 32 African nations. It expires in September, with no clear sign that it will be renewed. South Africa's trade minister warned it will be 'very difficult' to keep AGOA under current conditions. Fitrell said he is a 'big fan' of the deal but told African leaders they must do more to lobby Congress. Future arrangements may require 'much greater attention toward some form of reciprocity' to reflect Trump's push for U.S. economic interests, he said. Meanwhile, China is leveraging zero-tariff policies to expand its influence. In June, China — already Africa's biggest trading partner — said it plans to grant duty-free market access to 53 African nations. Still, Verster said some African nations might be cautious about strengthening ties with China, for fear of triggering retaliation from the U.S. 'Aligning with China … could possibly bring about more economic punishment from the U.S.," he said.
Los Angeles Times
5 hours ago
- Los Angeles Times
Trump's pivot from aid to trade leaves Africa wary as it faces tariffs and uncertainty
HARARE, Zimbabwe — When President Donald Trump met five African leaders in Washington in July, his lack of familiarity with the continent was on display. He praised Liberian President Joseph Boakai's English — Liberia's official language — and gestured at another leader to wrap up remarks. But the bigger takeaway was Trump's pledge to transform U.S.-Africa relations: a shift from aid to trade, even as the region reels from steep tariffs and sweeping aid cuts. African leaders offered minerals from manganese to uranium and possibly lithium. Senegal's president even sought to leverage Trump's love of golf by inviting him to build a course. Yet many nations are anxious about Washington's new path. After slashing billions in foreign aid, including shutting down the U.S. Agency for International Development — which provided over $12 billion in humanitarian assistance in 2025 alone — the Trump administration says it is forging a new approach: 'commercial diplomacy.' Trade, not aid, is the order of the day. 'It is now truly our policy for Africa,' said Troy Fitrell, the top U.S. diplomat for Africa, when announcing the strategy in Abidjan, Ivory Coast, in May. Ambassadors will now be judged not by aid projects but on 'how well they support' local businesses and 'how effectively they advocate for U.S. business and the number of deals they facilitate,' he said. Africa accounts for less than 1% of U.S. goods trade, but Fitrell called it 'the world's largest untapped market,' projecting its purchasing power could surpass $16 trillion by 2050. Washington touts quick progress: 33 agreements worth $6 billion in Trump's first 100 days, plus $2.5 billion in commitments at a U.S.-Africa business summit in June. Projects span grain storage and digital infrastructure in Angola, energy ventures in Rwanda, Sierra Leone and Congo, and tourism in Ethiopia. Still, many worry about the costs. Job losses and economic pain from tariffs are mounting even as Washington celebrates these wins. Trump did not invent the idea of trade over aid. African leaders have pushed for this since the 1970s. The problem, critics say, is the caveat: steep tariffs and uncertainty over the African Growth and Opportunity Act (AGOA), the U.S. flagship program for trade with the continent. 'In reality, these tariffs are not about trade balances. It's economic warfare,' said the Alternative Information and Development Centre, a South African NGO. Trump has imposed a 30% tariff on selected South African goods and threatens another 10% for nations aligned with the BRICS bloc of developing economies. South Africa's Automotive Business Council says vehicle exports to the U.S. have plunged over 80%, warning that tariffs 'strike at the heart of South Africa's industrialization agenda.' More than 100,000 jobs, mostly in auto and agriculture, are at risk, the council says. Smaller nations are also reeling. Lesotho declared a state of disaster after being hit with 50% duties — the second-highest rate after China — before Trump announced a 90-day pause. About 12,000 textile jobs hang in the balance, according to Lesotho's Minister of Trade, Industry, and Business Development, Mokhethi Shelile. From vanilla farmers in Madagascar to cocoa growers in Ivory Coast and oil exporters in Nigeria, tariffs have shaken economies and raised doubts about Washington's intent. 'The U.S. certainly can't have it both ways,' said Bester Brendon Verster, an economist at Oxford Economics Africa. 'The 'aid to trade' stance risks leaving Africa behind once the U.S. has gotten what it wanted, which will probably be critical minerals.' AGOA, enacted in 2000 and renewed in 2015, allows duty-free U.S. access for nearly 2,000 goods from 32 African nations. It expires in September, with no clear sign that it will be renewed. South Africa's trade minister warned it will be 'very difficult' to keep AGOA under current conditions. Fitrell said he is a 'big fan' of the deal but told African leaders they must do more to lobby Congress. Future arrangements may require 'much greater attention toward some form of reciprocity' to reflect Trump's push for U.S. economic interests, he said. Meanwhile, China is leveraging zero-tariff policies to expand its influence. In June, China — already Africa's biggest trading partner — said it plans to grant duty-free market access to 53 African nations. Still, Verster said some African nations might be cautious about strengthening ties with China, for fear of triggering retaliation from the U.S. 'Aligning with China … could possibly bring about more economic punishment from the U.S.,' he said. Mutsaka writes for the Associated Press.
