South Africa’s trade with United States versus Russia, Iran, and Palestine

South Africa has a trade surplus of R36 billion with the United States and a trade deficit of R5 billion with Russia, Iran, and Palestine.

Many economists urged the South African government to consider this economic reality when dealing with the United States.

Last week, United States President Donald Trump signed an executive order titled “Egregious Actions of The Republic of South Africa”.

The order highlighted the recently signed Expropriation Act, which it said shows a “shocking disregard of its citizen’s rights”.

It added that South Africa has taken aggressive positions towards the United States and its allies.

It includes accusing Israel, not Hamas, of genocide in the International Court of Justice and reinvigorating its relations with Iran to develop commercial, military, and nuclear arrangements.

Another problematic area is South Africa’s close relationship with Russia and the country’s joint military exercises with Russia and China.

Many influential United States politicians argue that South Africa has aligned itself with Russia, Iran, and Palestine in opposition to the United States’ interests.

One of the biggest risks to South Africa is losing its participation in the African Growth and Opportunity Act (AGOA).

AGOA provides participating countries, including South Africa, with trade preferences for quota and duty-free entry into the United States for certain goods.

Approximately 22% of South African exports to the United States benefit from AGOA, which amounts to billions in benefits.

In 2024, trade union Solidarity said trade with the United States provides jobs to 426,000 South Africans. 93,000 South Africans rely on AGOA for their job security.

AGOA contributes significantly to the South African economy and strengthens relations between South Africa and the United States of America.

However, losing its AGOA benefits is not the worst thing that can happen. If South Africa continues on this path, the United States may also impose tariffs and even sanctions.

Joel Pollak, the frontrunner to become the United States Ambassador to South Africa, also criticized South Africa’s transformation policies.

He explained that race-based policies, like black economic empowerment, are a problem for investors and opposed to what the United States is doing.

The fact that South Africa has soured its relationship with the United States can have dire consequences for the country.

South Africa should make friends with the United States

Many people, including renowned economist Dawie Roodt, urged South Africa to mend its relationship with the United States.

He said South Africa must realise that Donald Trump is the most powerful man in the world, in charge of the biggest economy in the world.

“Whatever he says or does will have a huge impact on South Africa,” Roodt said. “Donald Trump only saying a few things saw the South African rand weakening.

Decisions like kicking South Africa out of the AGOA, implementing tariffs, or even imposing sanctions will have a huge impact on the country.

In comparison, the United States economy is so large that it will hardly feel the impact of such a decision.

Roodt advised the South African government to be as diplomatic as possible and be politically neutral internationally. “South Africa should try to be friends with everybody,” he said.

“We have to be extremely careful on how we approach the Donald Trump Administration,” Roodt said.

“When he wakes up one morning and is angry with South Africa, he can inflict horrible pain on the local economy.”

“Whether you like him or not, you have to be on the good side of Donald Trump because he is the top dog.”

Gayton McKenzie, Patriotic Alliance leader and Minister of Sport, Art, Culture and Recreation, shared Roodt’s view.

McKenzie said the United States has a right to ask South Africa questions about local policies as it gives the country billions.

“When somebody gives you billions, and there is something they are unhappy about, it is their right to tell you there is a problem,” he said.

South Africa’s trade with the United States versus Russia, Iran, and Palestine

The export and import data between South Africa and the United States clearly illustrate Roodt and McKenzie’s views.

In 2024, South Africa exported goods worth R157 billion to the United States. The biggest exports were precious metals and vehicles.

South Africa imported goods worth R120 billion over the last year, including machinery, mineral products, vehicles, and aircraft.

This means South Africa has a trade surplus of R36 billion with the United States, which is extremely valuable.

Trade with countries which South Africa aligned itself with, Russia, Iran, and Palestine, are much smaller.

In 2024, South Africa exported goods worth R5.4 billion to Russia, R359 million to Iran, and R155,000 to Palestine.

It imported products worth R10 billion from Russia, R68 million from Iran, and R54,000 from Palestine.

South Africa had a trade deficit of R4.5 billion with Russia, Iran, and Palestine. This was due to the large R4.8 billion trade deficit with Russia.

Simply put, South Africa benefits tremendously from its trade with the United States and derives little benefit from Russia, Iran, and Palestine.

Therefore, it is a poor financial decision for South Africa to align itself with Russia, Iran, and Palestine instead of the United States.

The table below shows the trade between South Africa and the United States, Russia, Iran, and Palestine.