South Africa propose $1 Billion LNG deal with US to avert tariffs, boost trade

South Africa propose $1 Billion LNG deal with US to avert tariffs, boost trade

South Africa has proposed a $1 billion annual liquefied natural gas (LNG) import deal with the United States, in a bid to strengthen economic ties and fend off looming US tariffs.

The 10-year agreement, discussed during talks between President Cyril Ramaphosa and US President Donald Trump, would see South Africa secure duty-free exports of cars, steel, aluminum, and auto parts in return.

Under the draft plan, the US would also invest in South Africa’s gas infrastructure, including controversial fracking operations. Trade Minister Parks Tau described the deal as a critical step to diversify the country’s economy and preserve jobs amid fears of losing benefits under the African Growth and Opportunity Act (AGOA).

Despite strained diplomatic overtones exacerbated by Trump’s renewed “white genocide” claims Ramaphosa’s visit secured pledges for ongoing economic cooperation and US participation in the G20 summit in Johannesburg.