Is Zimbabwe wooing Donald Trump by paying white farmers and ending tariffs? | Trade War News

Long-frozen relations between the United States and Zimbabwe may be thawing after the Southern African nation 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.

Alongside his stated aim of reducing trading deficits with the US’s trading partners, Trump has repeatedly claimed that white farmers in Southern Africa are discriminated against. Both he 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. Over that time, hyperinflation has weakened the economy, killed jobs, and seen the introduction of several legal tenders, from the US dollar to the new gold-backed ZiG.

So, might Zimbabwe be trying to please the US and woo President Trump in the hope of economic gains? And could that work? Here’s what we know:

Why has Zimbabwe cancelled tariffs on US imports?

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.

Tariffs levied on African nations by President Trump vary. Neighbouring Lesotho has been hit with the highest tax of any African nation at 50 percent, and is currently seeking to renegotiate with the White House.

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. The only exception is China, which has opted to go head-to-head by reciprocating and increasing taxes on US imports into the country to 125 percent and will not benefit from the pause.

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 tariffs announcement. Until now, most goods entering the country have been subject to a 15 percent levy.

The principle of reciprocal tariffs, as a tool for safeguarding domestic employment and industrial sectors, holds merit. However, the Republic of Zimbabwe maintains a policy of fostering amicable relations with all nations, and cultivating adversarial relationships with none.

In…

— President of Zimbabwe (@edmnangagwa) April 5, 2025

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, 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.

Mugabe’s land programme was supposed to redistribute land to disadvantaged Black Zimbabweans with the aim of boosting equity and agricultural development. Land was seized from some 4,000 white farmers, sometimes forcefully and violently between 2000 and 2001, and at least seven farmers were killed.

Until that point, minority white people, who made up about 4 percent of the population, owned more than half the land in Zimbabwe, while locals were crowded into “native reserves”.

However, the policy failed to achieve its aim and contributed to the weakening of the Zimbabwean economy. Rather than resettle peasants, the political elite including Mugabe’s family, acquired large swaths of land for rent. Farming output dropped significantly, causing food supply chains to dry up. Zimbabwe was also sanctioned by several Western countries, including the US, for the move.

In 2020, after two decades of crippling sanctions, the government agreed to pay white farmers $3.5bn for infrastructure such as wells, irrigation equipment and buildings on seized land. Only 1 percent was to be paid in cash, with the balance to be settled with treasury bonds. According to Finance Minister Ncube, the government has now issued treasury bonds for the first batch of farmers.

The payments have caused controversy in the country, with some Black Zimbabweans questioning why public money is being used to compensate the farmers, rather than being paid directly by those who benefitted from the policy.

What is the current political situation in Zimbabwe?

Zimbabwean politics are currently dominated by a power struggle within the ruling ZANU-PF party.

Zimbabwean President Emmerson Mnangagwa, who came to power in 2017 on promises of democratic and economic reforms, is facing pressure to step down from within his party after his current, second term. ZANU-PF has dominated government since the country’s independence in 1980.

A succession battle has erupted ahead of the general elections scheduled for 2028. Factions have emerged: one supporting a prolonged, unconstitutional third term for Mnangagwa, 82, so that he can continue with his reforms, and another supporting the ascendancy of Constantino Chiwenga, his 68-year-old vice president.

Experts say the government hopes its recent decision to cancel tariffs on US goods may lead to a lifting of sanctions by countries like the US and other potential international lenders. That could provide some respite for Zimbabwe after years of economic decline.

However, economist Mahembe said the tariff move was more likely to ingratiate a small, political elite with the US and other markets, to enable those few to benefit from lucrative mineral sales.

In March 2024, First Lady Auxillia Mnangagwa, alongside her husband and several other government officials, was sanctioned by the United States for alleged involvement in illicit diamond and gold networks.

Earlier, in 2023, an Al Jazeera investigation revealed that Zimbabwean officials were using smuggling gangs to sell the country’s gold to soften the impact of sanctions.

“It’s not just about the country, it’s also really more about them,” Mahembe said, referring to the country’s political elite.

Will Zimbabwe’s moves appease Trump?

It’s unclear if President Mnangagwa can achieve his stated goal of building a better, “positive” relationship with Washington.

Regarding compensating white farmers, it is unclear whether the recent move to make the first compensation payments is designed to please Trump.

Furthermore, some problems concerning the payments have emerged. A group of affected farmers accused the government on Wednesday of over-stating the amounts being paid and said the amount being paid now is too low.

In a statement, Deon Theron, acting chairman of the Compensation Steering Committee set up to represent farmers, also said officials in Harare had not properly consulted the majority of the farmers in the compensation process.

“In reality, only a small token payment has been made and thousands of farmers, the significant majority by number, remain uncompensated,” Theron said.

The $3.5bn agreed to was “already a substantial discount on the actual value of the properties, and these payments have reached fewer than 10 percent of farmers,” he added.