South Africa offers Tesla tariff deal to secure U.S. trade, Starlink access

South African President Cyril Ramaphosa is heading to Washington this week in a bid to revive strained relations with U.S. President Donald Trump, with plans to pitch a business-focused agenda centered on Elon Musk’s companies, including Tesla and Starlink.

The visit comes amid souring diplomatic ties. Trump’s administration recently slashed aid to South Africa and granted asylum to white South Africans claiming racial discrimination—allegations Pretoria strongly denies.

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But Ramaphosa is shifting focus to mutual economic interests. His government is preparing a proposal that could offer favorable import tariffs for Tesla in exchange for electric vehicle infrastructure investment across South Africa.

“It could be one of the points discussed,” presidential spokesperson Vincent Magwenya told Reuters via text, confirming Tesla’s potential role in the talks.

Starlink, Musk’s satellite internet venture, is also on the agenda. South Africa has yet to license the service, citing regulatory gaps. In March, the country’s telecom regulator revealed that Starlink had not even submitted a formal application.

Nonetheless, Magwenya said, “Certainly, the issue will be discussed.”

Musk, who was born in South Africa, has accused local regulations, particularly Black Economic Empowerment (BEE) rules, of barring Starlink from the market. The BEE framework requires 30% local ownership of foreign telecom operations, a rule Musk publicly criticized earlier this year. Officials dismissed his claims as baseless.

Despite political tension, officials see trade as a bridge. Agriculture Minister John Steenhuisen, part of Ramaphosa’s delegation, stressed the importance of preserving South Africa’s duty-free access to U.S. markets under the African Growth and Opportunity Act (AGOA).

“Losing these benefits would be disastrous for farmers, farm workers, and the economy at large,” Steenhuisen warned in a statement.

The high-stakes meeting with Trump is scheduled for Wednesday. Both sides are expected to explore ways to recalibrate a relationship shaken by geopolitical disagreements but still underpinned by deep commercial ties.