In a bold move to safeguard its automotive exports and stabilize its economy, South Africa has proposed a trade deal to the United States that involves importing liquefied natural gas (LNG) in exchange for duty-free access for its vehicles.
The proposal, announced by Minister in the Presidency Khumbudzo Ntshavheni, outlines South Africa’s offer to import between 75 and 100 petajoules of LNG annually for the next decade. If accepted, the agreement could unlock up to $1.2 billion in annual trade, totaling as much as $12 billion over ten years.
“This deal has the potential to be a game-changer,” Ntshavheni stated in a government-issued statement on Sunday evening. “It is designed to bolster our economy, secure our automotive sector, and reignite constructive engagement with the United States.”
The automotive industry is a cornerstone of South Africa’s economy, accounting for roughly 5% of the country’s GDP. However, that sector has faced increasing pressure in recent years—especially after former US President Donald Trump threatened to slap 30% tariffs on South African exports, a move that rattled economic confidence and strained diplomatic ties.
While the US has yet to formally respond to the proposal, many see it as a strategic lifeline—one that not only aims to inject billions into the US energy sector but also gives South Africa a much-needed buffer for one of its most vital industries.
This deal comes at a time when Pretoria and Washington are attempting to mend what many describe as the worst bilateral relations in years. The LNG-for-tariff-relief proposal could signal a turning point—if both sides are willing to come to the table.
For now, all eyes are on Washington as South Africa waits for a response that could define the next decade of its economic trajectory.