Latest News

Trump hosts five African leaders amid tariffs and aid cuts

On Wednesday, President Donald Trump met with leaders of five African countries as the U.S. president intensified a trade conflict that threatens developing countries that depend on the trade with the largest economy in the world.

A White House official confirmed that Trump will host leaders from Gabon and Guinea-Bissau as well as Liberia and Mauritania for a lunch and discussion at the White House. The discussions are expected to be focused on business opportunities.

Africa experts await Trump's announcement of dates for a larger summit with African leaders. This could be in September, around the time for the United Nations General Assembly.

The mini-summit this week is the latest attempt by successive U.S. Administrations to counter perceptions that the U.S. has neglected a continent on which China has made increasing economic inroads. Since Trump's inauguration in January, the Trump administration has imposed steep cuts on foreign aid to Africa as well as waged a tariff-war against U.S. trading partner. Melania, Trump's wife, visited Africa during Trump's first term. In 2018, some African politicians branded Trump as a racist after it was reported that he had called immigrants from Africa and Haiti "shithole countries". Trump falsely accused South African President Cyril Ramaphosa of genocide against whites and land seizure during a heated White House meeting in May.

The focus of the meeting on Wednesday was likely to be economics.

The U.S. International Development Finance Corporation announced earlier that day that it would provide funding for project development at the Banio Potash Mine, Mayumba in Gabon. This will help Gabon to reduce its dependency on imported goods.

Conor Coleman, DFC's head of investments, said that DFC's efforts benefit not only the countries and communities in which they invest, but also U.S. interests by opening up new markets, strengthening existing trade relationships and promoting an economically prosperous and secure global economy. Trump's government has continued to send letters informing trading partners that higher tariff rates will take effect on August 1. It also launched a new front of his trade war with members of the BRICS Group of developing countries.

The Obama administration also cut large swaths from U.S. Foreign Aid for Africa in an effort to reduce spending that it deems wasteful, and refocus on a "America First" agenda.

The Lancet Medical Journal published a study last week that showed these cuts could lead to an additional 14 million deaths by 2030.

The U.S. government has stated that it will prioritize trade and investments over charitable assistance, and focus on increasing opportunities for U.S. companies.

The five countries that were invited all have rich natural resources including gold, cobalt and lithium, as well as manganese ore, iron, diamonds. China has invested heavily in Africa, particularly in the extraction of resources, in recent years.

African Union officials are questioning how Africa can deepen its trade relations with the U.S., given what they call "abusive tariff proposals" and visa restrictions that primarily target travelers from Africa. Ambassador Troy Fitrell has denied allegations that the United States engages in unfair trade practices. (Reporting and editing by Deepababington, Matt Spetalnick, Andrea Shalal)

(source: Reuters)