South Africa Proposes LNG Purchase in Exchange for US Tariff Relief

In a strategic move, South Africa has proposed purchasing liquefied natural gas (LNG) from the United States as part of a trade arrangement that would allow it to avoid paying tariffs on cars shipped to the US.

This offer was revealed in a statement made by Minister to the Presidency Khumbudzo Ntshavheni and made public on Sunday evening.

“SA will import 75 – 100 PJ (petajoules) per annum for 10 years of LNG gas from the US which will unlock approximately $900 million to US1.2 billion in trade per annum and US$9 billion – US$12 billion for ten years based on applicable price,” part of the statement read.

Although Washington has yet to respond to the proposal, the initiative may serve as a tool for South Africa to stabilize its weak economy and potentially ease ongoing diplomatic strains with the US, which have grown more severe in recent times.

Motor vehicle production and international sales make up a critical part of South Africa’s economic engine, contributing around 5% to the national output.

There was a time when the former US president Trump warned of imposing 30% tariffs on South African exports headed for American markets.