LONG-FROZEN relations between the United States and Zimbabwe may be thawing after the latter slashed all taxes on US goods flowing into the country and announced it has begun to pay compensation to white farmers who lost land during controversial, sometimes violent land expropriation reforms that were instituted 25 years ago.
The moves come amid a wave of sweeping tariffs imposed on countries around the world by US President Donald Trump, and as other countries scramble to renegotiate with Washington. Trump and his adviser, South African-born Tesla billionaire Elon Musk, have criticised the treatment of white minorities in South Africa, alleging that they face discrimination.
Zimbabwe and South Africa have white minority populations who are mainly descendants of British settlers. Meanwhile, Zimbabwe has been in the throes of economic collapse for more than two decades.
So, might Zimbabwe be trying to please the US and woo President Trump in the hope of economic gains? President Trump’s April 2 Liberation Day tariff announcements saw dozens of countries hit with varying surcharges on goods imported to the US, including Zimbabwe, which was hit with an 18 percent levy on all products it exports there.
Zimbabwe mostly exports steel components, tobacco and sugar to the US while the US exports machinery, pharmaceuticals and agricultural produce to the Zimbabwean market. Trade between the two countries is limited, reaching a total of about $111.6m in 2024.
US exports to Zimbabwe amounted to $43.8m, while imports from Zimbabwe were $67.8m. The trade deficit in favour of Zimbabwe was, therefore, just over $24m, according to US government data. Countries around the world have been scrambling to negotiate a reduction in tariffs with Washington.
On April 9, the White House placed a 90-day pause on the reciprocal tax hikes to allow time for country representatives to strike deals and because most countries had not retaliated, Trump said. Zimbabwe has taken an entirely different approach.
In a post on X on April 5, Zimbabwe’s President Emmerson Mnangagwa announced that all taxes on US imports would be scrapped in order to build a “positive relationship” with Washington.
The move is “intended to facilitate the expansion of American imports within the Zimbabwean market, while simultaneously promoting the growth of Zimbabwean exports destined for the United States”, the Zimbabwean president said. Zimbabwe is the first country to suspend tariffs on US goods in response to Trump’s tariff –
tariffs announcement. Until now, most goods entering the country have been subject to a 15 percent levy.
Will cancelling tariffs on US goods be good for Zimbabwe?
It’s unlikely, experts say. South Africa-based economist Eddie Mahembe from business consultancy Underhill Corporate Solutions, said Zimbabwe cannot afford not to tax US imports and the move could worsen the country’s already frail economy.
“It’ll mean that US goods will flood Zimbabwe, and then it will kill the economy more,” Mahembe told Al Jazeera. Local competitors, already affected by hyperinflation and cheap goods coming in from China, are likely to suffer more, he added. Zimbabwe could see less production, more unemployment and even lower revenues from levies, he said.
“What they did was not necessary, at all,” Mahemmbe added, referring to the Zimbabwean government.
Experts also say the move could cause tension with Zimbabwe’s biggest trading partners — South Africa, China and the United Arab Emirates, who might question why they should still pay tariffs on their goods entering Zimbabwe, when the US does not have to.
“This move could sour Zimbabwe’s relationships with partners,” policy analysts Craig Moffat and EM Hoza wrote in an opinion piece for the South African newspaper, The Mail and Guardian.
“These countries might demand similar tariff exemptions or seek to renegotiate trade terms … Zimbabwe’s actions could be perceived as undermining the principles of fair, non-discriminatory trade.” Why is Zimbabwe making payments to white farmers now? On April 10,
On April 10, Zimbabwean Finance minister Mthuli Ncube told reporters the government had approved a disbursement of $3,1m in compensation to be shared by white farmers displaced from nearly 400 farms seized by the government in 2000 after then-President Robert Mugabe signed a controversial land expropriation programme.
This is the first in a series of planned compensation payments. The Zimbabwean government did not explicitly state that the recent payments were prompted by President Trump’s tariffs announcement and negotiations.
The payments have caused controversy in the country, with some Zimbabweans questioning why public money is being used to compensate the farmers, rather than being paid directly by those who benefitted from the policy. — Aljazeera
