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South Africa Proposes Major Energy Deal with the U.S. in Exchange for Tariff Exemptions

During his recent visit to the White House, South African President Cyril Ramaphosa presented a strategic proposal to U.S. President Donald Trump, offering to import large quantities of American liquefied natural gas (LNG) in exchange for tariff exemptions on a range of key South African exports.

The South African government announced this week its intention to import between 75 and 100 million cubic meters of LNG annually from the United States, currently the world’s largest exporter of this vital energy source. The total value of the deal is estimated at $12 billion over a decade—approximately $1 billion per year.

In return, South Africa is seeking tariff exemptions on its exports to the U.S., including an annual quota of 40,000 vehicles, 385,000 tons of steel, and 132,000 tons of aluminum.

The proposal was put forward during a meeting between President Ramaphosa and President Trump on May 21 as part of a strategic trade partnership aimed at expanding cooperation in energy, industry, and advanced technologies.

Additionally, South Africa expressed its willingness to collaborate with the U.S. on developing natural gas extraction technologies, particularly hydraulic fracturing, to boost domestic production.

This move reflects South Africa’s ambition to strengthen its energy security and reduce reliance on traditional sources, while also deepening economic ties with the United States amid growing global challenges in the energy sector.

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