The long-frozen relationship between the US and Zimbabwe may be thawing after the South African country announced it would cut down all taxes on US goods flowing into the US and pay compensation to white farmers who lost their land during the controversial, sometimes violent land expropriation reforms enacted 25 years ago.
The move comes amid the wave of tariffs imposed on countries around the world by US President Donald Trump, and as other countries rush to renegotiate with Washington.
Trump has repeatedly argued that white South African farmers are being discriminated against in addition to his stated purpose of reducing trading deficits with US trading partners. He and his advisor, South African-born Tesla billionaire Elon Musk, have criticised the treatment of South African white minorities and claimed they face discrimination. Zimbabwe and South Africa have white minorities, mainly descended from British settlers.
Meanwhile, Zimbabwe has been suffering from an economic collapse for over 20 years. Meanwhile, hyperinflation weakened the economy, killed jobs, and several legal bids were introduced, ranging from the US dollar to the jigs supported by new gold.
So is Zimbabwe trying to please the US and President Trump in anticipation of economic benefits? And will that work? Here’s what we know:
Why did Zimbabwe cancel US import duties?
President Trump’s announcement of tariffs on the April 2 release date has hit dozens of countries with various additional charges for goods imported into the United States, including Zimbabwe.
The tariffs collected by President Trump on African countries vary. Nearby Lesotho has reached 50% of the highest tax in African countries and is currently about to renegotiate with the White House.
Zimbabwe mainly exports steel parts, tobacco and sugar to the United States, while the United States exports machinery, medicines and agricultural products to the Zimbabwean market.
Trade between the two countries is limited, totaling around $1,11.6 million in 2024. US exports to Zimbabwe amounted to $43.8 million, while imports from Zimbabwe amounted to $67.8 million. Therefore, the trade deficit in favor of Zimbabwe was just over $24 million, according to US government data.
Countries around the world are rushing to negotiate tariff reductions with Washington. On April 9, the White House suspended the mutual tax hike for 90 days as most countries were not retaliating to allow country representatives to take the deal, Trump said. The only exception is China, which has chosen to face off directly by increasing US imports with domestic imports, and will not benefit from the suspension.
Zimbabwe takes a completely different approach. In a post on X on April 5th, Zimbabwean President Emerson Mnangagwa announced that all taxes on US imports will be scrapped to build a “positive relationship” with Washington.
The Zimbabwean president said the move “intentionally aims to promote the expansion of US imports in the Zimbabwean market, but at the same time, to promote the growth of Zimbabwean exports.”
Zimbabwe was the first country to suspend tariffs on US goods in response to Trump’s tariff announcement. Until now, most products that have entered the country have been subject to a 15% tax.
The principle of mutual tariffs as a tool to protect the domestic employment and industrial sector retains merit. However, the Republic of Zimbabwe maintains a policy that promotes friendly relations with all countries and cultivates hostile relations with everyone.
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– Zimbabwe president (@edmnangagwa) April 5, 2025
Is canceling customs duties on US goods good for Zimbabwe?
That’s not likely, experts say. South Africa-based economist Eddie Mahembe is Eddie Mahembe of Business Consultant Underhill Corporate Solutions, Zimbabwe cannot afford to tax US imports, saying the move could exacerbate the country’s already frail economy.
“That means the US will flood Zimbabwe and then kill more of the economy,” Mahembe told Al Jazeera. He added that local competitors, already affected by hyperinflation and the cheap goods coming in from China, are likely to suffer more. Zimbabwe could see lower production from taxation, lower unemployment and even lower incomes, he said.
“What they did was not necessary at all,” Mahembe added, referring to the Zimbabwe government.
Experts also say the move could spark tensions with Zimbabwe’s biggest trading partners, South Africa, China and the United Arab Emirates. They may question why they should still pay customs duties on goods entering Zimbabwe when the US does not need to. “This move could sour Zimbabwe’s relationship with partners,” policy analysts Craig Moffat and Mza wrote in an opinion piece in South African newspaper The Mail and Guardian.
“These countries may seek similar tariff exemptions or attempt to renegotiate terms of trade. Zimbabwe’s actions may be perceived as undermining fair and non-discriminatory principles of trade.”
Why is Zimbabwe paying white farmers now?
On April 10, Zimbabwe’s Finance Minister Mthuli Ncube told reporters that the government approved the payment of $3.1 million in compensation shared from nearly 400 farms seized by the government in 2000, and that the government had evacuated after then-Robert Mugabe signed the controversial land contraction programme. This is the first in a series of planned fee payments.
The Zimbabwean government has not explicitly stated that the recent payments were spurred by President Trump’s tariff announcements and negotiations.
Mugabe’s land programme was to redistribute land to underprivileged black Zimbabweans with the aim of boosting equity and agricultural development. The land was seized from around 4,000 white farmers, sometimes robbed powerfully and violently between 2000 and 2001, killing at least seven farmers.
Up until that point, minority white people, who accounted for about 4% of the population, owned more than half of Zimbabwean land, while locals were busy in the “native reserve.”
However, this policy failed to achieve its objectives and contributed to the weakening of Zimbabwe’s economy. Rather than farmer resettlers, political elites, including Mugabe families, have acquired large land for rent. Agricultural output has dropped significantly, and the food supply chain has dried up. Zimbabwe was also approved by several Western countries, including the United States for this move.
In 2020, the government agreed to pay white farmers $3.5 billion to $3.5 billion for wells, irrigation equipment and building infrastructure after 20 years of disability sanctions. Only 1% was paid in cash because they had balances settled in Ministry of Finance bonds. According to NCUBE Finance Minister, the government is currently issuing Treasury debts for the first batch of farmers.
The payment has sparked controversy across the country, with some black Zimbabweans questioning why public money is being used to compensate farmers rather than directly paid by those who benefited from the policy.
What is the current political situation in Zimbabwe?
Zimbabwean politics is now ruled by a power struggle within the ruling Zanu-PF party.
Zimbabwean President Emerson Mnangagwa, who came to power in 2017 on a promise of democratic and economic reform, faces pressure to step down from within his party after his current second term. Zanu-PF has controlled the government since its independence in 1980.
The battle for succession exploded ahead of the 2028 general election. Factions have appeared. One supports the long, unconstitutional third term of 82-year-old Mnangagwa, so he can continue reforms and supports the ascending order of 68-year-old Vice President Constantinochuwenga.
Experts say they hope that the government’s recent decision to cancel tariffs on US goods could lead to lifting sanctions by countries such as the US and other potential international lenders. It could provide Zimbabwe with some rest after years of economic decline.
But economist Mahembe said the tariff move is likely to invade small political elites with the US and other markets, and could benefit from profitable mineral sales.
In March 2024, First Lady Axialium Nangagwa was approved by the US for alleged involvement in the illegal diamond and gold network, alongside her husband and several other government officials.
Previously, in 2023, an investigation by Al Jazeera revealed that Zimbabwean officials had used smuggling gangs to sell the state’s money to ease the impact of sanctions.
“It’s really more important not just about the country, but about them,” Mahembe said, referring to the country’s political elite.
Will Zimbabwe’s movements appease Trump?
It is unclear whether President Mnangagwa will be able to achieve his stated goal of building a better “positive” relationship with Washington.
With regard to compensation for white farmers, it is unclear whether recent moves to make initial compensation payments have been designed to please Trump.
Additionally, several issues with payments have become apparent. A group of affected farmers accused the government of overstateing the amount being paid on Wednesday, saying the amount currently being paid is too low.
In a statement, Deon Theron, chair of the Compensation Steering Committee, which was established to represent farmers, said Harare officials have not properly consulted the majority of farmers during the compensation process.
“In reality, only small token payments are being made, leaving thousands of farmers, large numbers of which remain uncompensated,” Theron said.
The $3.5 billion agreed to “already significantly discounts the actual value of the property, and these payments have reached less than 10% of farmers,” he added.