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CTV News
5 days ago
- Business
- CTV News
Trump's pivot from aid to trade leaves Africa wary as it faces tariffs and uncertainty
U.S. President Donald Trump speaks with African leaders during a lunch in the State Dining Room of the White House, Wednesday, July 9, 2025, in Washington. (AP Photo/Evan Vucci) HARARE, Zimbabwe — 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 US$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 one per cent of U.S. goods trade, but Fitrell called it 'the world's largest untapped market,' projecting its purchasing power could surpass US$16 trillion by 2050. Early deals, lingering doubts Washington touts quick progress: 33 agreements worth US$6 billion in Trump's first 100 days, plus US$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 per cent tariff on selected South African goods and threatens another 10 per cent 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 per cent, 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 per cent 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. --- Farai Mutsaka, The Associated Press
Washington Post
5 days ago
- Business
- Washington Post
Trump's pivot from aid to trade leaves Africa wary as it faces tariffs and uncertainty
HARARE, Zimbabwe — 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. 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.
Boston Globe
09-07-2025
- Politics
- Boston Globe
Trump hosts West African leaders as the region reels from sweeping US aid cuts
The surprise meeting with the leaders of Liberia, Senegal, Gabon, Mauritania and Guinea-Bissau comes as the Trump administration has taken radical steps it said are meant to reshape the U.S. relationship with Africa. The leaders are expected to discuss key areas of cooperation including economic development, security, infrastructure and democracy, according to a statement from Liberia's presidency. The White House said 'this discussion and lunch dialogue with African heads of state was arranged because President Trump believes that African countries offer incredible commercial opportunities which benefit both the American people and our African partners.' Advertisement Earlier this month, U.S. authorities dissolved the U.S. Agency for International Development and said it was no longer following what they called 'a charity-based foreign aid model' and instead will focus on partnerships with nations that show 'both the ability and willingness to help themselves.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The U.S. African Affairs senior bureau official Troy Fitrell earlier this year said the Trump administration wants to focus on eliminating trade deficits with Africa. 'Assistance involves a donor and a recipient, but commerce is an exchange between equals,' he said. Critics say the abrupt shift will result in millions of deaths. A study published in the Lancet medical journal late last month projected that USAID's dismantling and deep funding cuts would lead to more than 14 million additional deaths globally by 2030, including 4.5 million children. Advertisement West African countries are among the hardest hit by the dissolution of USAID. The U.S. support in Liberia amounted to 2.6% of the country's gross national income, the highest percentage anywhere in the world, according to the Center for Global Development. The five nations whose leaders are meeting Trump represent a small fraction of U.S.-Africa trade, but they possess untapped natural resources. Senegal and Mauritania are important transit and origin countries when it comes to migration, and along with Guinea-Bissau are struggling to contain drug trafficking, both issues of concern for the Trump administration. Liberia's President Joseph Nyuma Boakai in a statement 'expressed optimism about the outcomes of the summit, reaffirming Liberia's commitment to regional stability, democratic governance and inclusive economic growth.' Gabon, Liberia, Mauritania and Senegal are among 36 countries which might be included in the possible expansion of Trump's travel ban. Associated Press writer Darlene Superville in Washington contributed to this report.
Los Angeles Times
09-07-2025
- Politics
- Los Angeles Times
Trump hosts West African leaders as the region reels from U.S. aid cuts
DAKAR, Senegal — President Trump is hosting five West African leaders on Wednesday for a 'multilateral lunch' at the White House as the region reels from the impact of U.S. aid cuts. The leaders of Liberia, Senegal, Gabon, Mauritania and Guinea-Bissau are expected to discuss key areas of cooperation, including economic development, security, infrastructure and democracy, according to a statement from the Liberian presidency. The White House has not provided further details. The surprise meeting comes as the Trump administration has taken radical steps it said are meant to reshape the U.S. relationship with Africa. Earlier this month, U.S. authorities dissolved theU.S. Agency for International Development, and said it was no longer following what they called 'a charity-based foreign aid model' and will instead focus on partnership with nations that show 'both the ability and willingness to help themselves.' The U.S. African Affairs senior bureau official Troy Fitrell earlier this year said that Trump administration wants to focus on eliminating trade deficits with Africa. 'Assistance involves a donor and a recipient, but commerce is an exchange between equals,' he said. Critics say that the abrupt shift will result in millions of deaths. A study published in the Lancet medical journal late last month projected that USAID's dismantling and deep funding cuts would lead to more than 14 million additional deaths globally by 2030, including 4.5 million children. West African countries are among the hardest hit by the dissolution of the USAID. The U.S. support in Liberia amounted to 2.6% of the country's gross national income, the highest percentage anywhere in the world, according to the Center for Global Development. Five nations whose leaders are meeting Trump represent a small fraction of the U.S-Africa trade, but they possess untapped natural resources. Senegal and Mauritania are important transit and origin countries when it comes to migration, and along Guinea Bissau are struggling to contain drug trafficking, both issues of concern for the Trump administration. Liberia's President Joseph Nyuma Boakai in a statement 'expressed optimism about the outcomes of the summit, reaffirming Liberia's commitment to regional stability, democratic governance, and inclusive economic growth.' Gabon, Liberia, Mauritania and Senegal are among 36 countries which might be included in the possible expansion of Trump's travel ban. Pronczuk writes for the Associated Press.
Associated Press
09-07-2025
- Politics
- Associated Press
Trump hosts West African leaders as the region reels from US aid cuts
DAKAR, Senegal (AP) — U.S. President Donald Trump is hosting five West African leaders on Wednesday for a 'multilateral lunch' at the White House as the region reels from the impact of U.S. aid cuts. The leaders of Liberia, Senegal, Gabon, Mauritania and Guinea-Bissau are expected to discuss key areas of cooperation, including economic development, security, infrastructure and democracy, according to a statement from the Liberian presidency. The White House has not provided further details. The surprise meeting comes as the Trump administration has taken radical steps it said are meant to reshape the U.S. relationship with Africa. Earlier this month, U.S. authorities dissolved theU.S. Agency for International Development, and said it was no longer following what they called 'a charity-based foreign aid model' and will instead focus on partnership with nations that show 'both the ability and willingness to help themselves.' The U.S. African Affairs senior bureau official Troy Fitrell earlier this year said that Trump administration wants to focus on eliminating trade deficits with Africa. 'Assistance involves a donor and a recipient, but commerce is an exchange between equals,' he said. Critics say that the abrupt shift will result in millions of deaths. A study published in the Lancet medical journal late last month projected that USAID's dismantling and deep funding cuts would lead to more than 14 million additional deaths globally by 2030, including 4.5 million children. West African countries are among the hardest hit by the dissolution of the USAID. The U.S. support in Liberia amounted to 2.6% of the country's gross national income, the highest percentage anywhere in the world, according to the Center for Global Development. Five nations whose leaders are meeting Trump represent a small fraction of the U.S-Africa trade, but they possess untapped natural resources. Senegal and Mauritania are important transit and origin countries when it comes to migration, and along Guinea Bissau are struggling to contain drug trafficking, both issues of concern for the Trump administration. Liberia's President Joseph Nyuma Boakai in a statement 'expressed optimism about the outcomes of the summit, reaffirming Liberia's commitment to regional stability, democratic governance, and inclusive economic growth.' Gabon, Liberia, Mauritania and Senegal are among 36 countries under review for possible inclusion in a US travel ban.
