Trump hosts five African leaders as tariffs, aid cuts bite

Trump hosts five African leaders as tariffs, aid cuts bite

WASHINGTON (Reuters) -President Donald Trump meets with leaders from five African nations on Wednesday as the U.S. leader ramps up a trade war that threatens developing nations that depend on trade with the world’s largest economy.

Trump is hosting leaders from Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal for a discussion and lunch at the White House, with the discussions to focus on business opportunities, a White House official said.

Africa experts are waiting for Trump to announce dates for a broader summit with African leaders, possibly in September around the time of the United Nations General Assembly. 

This week’s mini-summit marks the latest effort by successive U.S. administrations to counter perceptions of U.S. neglect of a continent where China has increasingly made economic inroads. Since Trump took office in January, his administration has hit Africa with steep cuts in foreign aid as well as a tariff war against U.S. trading partners.

Trump did not visit Africa during his first term, though his wife, Melania, did. Some African politicians labeled Trump a racist in 2018 after he was reported to have described some immigrants from Africa and Haiti as coming from “shithole” countries.

In May, Trump confronted South African President Cyril Ramaphosa with explosive false claims of white genocide and land seizures during a tense White House meeting.

Wednesday’s meeting was expected to focus on economics.

The U.S. International Development Finance Corporation said earlier in the day it would provide project development funding for the Banio Potash Mine in Mayumba, Gabon, helping Gabon reduce its dependence on imports. 

“DFC’s efforts not only benefit the countries and communities where they invest but also advance U.S. economic interests by opening new markets, strengthening trade relationships, and promoting a more secure and prosperous global economy,” said DFC head of investments Conor Coleman. 

Trump’s government continues to send out letters notifying trading partners of higher tariff rates taking effect on August 1 and has launched a new front in his trade war against members of the BRICS group of developing countries.

His administration has also axed huge swaths of U.S. foreign aid for Africa as part of a plan to curb spending it considers wasteful and focus on an “America First” agenda.

Those cuts could result in more than 14 million additional deaths by 2030, research published by The Lancet medical journal showed last week. 

Senior U.S. officials have said that Washington wants to prioritize trade and investment over charity-based assistance and will focus on creating more opportunities for U.S. firms.

All five countries invited have abundant natural resources, including manganese, iron ore, gold, diamonds, lithium and cobalt, which are essential for use in current technologies. China has made huge inroads in Africa in recent years, investing heavily across the continent, especially in resource extraction.

But African Union officials question how Africa could deepen trade ties with the U.S. under what they called “abusive” tariff proposals and visa restrictions largely targeting travelers from Africa. The top U.S. diplomat for Africa, Ambassador Troy Fitrell, has dismissed allegations of unfair U.S. trade practices. 

(Reporting by Andrea Shalal, Matt Spetalnick and Jeff Mason, editing by Deepa Babington)