First and foremost South Africa is one of the BRICS nations founding members so I'm just going to go directly and talk about the economic impact of Trump's actions on them.
And also what I think is going to happen to South Africa economy in the long run
I'm not majorly concerned with the internal politics or if the South African government is guilty of anything or not
I'm just going to focus on the economic impact only.
In 2023 alone about $440M was given to South Africa in aid by the United States with the majority of it going to health especially the HIV and AIDS program.
Withdrawal of this funding will increase the price of some of these drugs which can potentially lead to adverse health concerns and higher medical cost.
Apart from the health sector other sectors might also be affected by the aid cut which includes education, infrastructural development, and other Economic support programs.
Most importantly the economic relationship between the United States and South Africa might be affected heavily or strained and this can cause uncertainty especially the African Growth and Opportunities Act (AGOG) which allows south Africa goods to enter the American market Tariff free might be Affected.
If Trump can Tariff Canada and Mexico then he can put a stop to the program or stop South Africa from participating in the program and this could reduce trade volumes balance of payment deficit and potential loss of Job and can influence foreign investment.
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