Trump targets 'politicised' banking as new SA tariffs take effect
Trump does after banks that won't allow all citizens to open accounts in the US.
Image: The White House
US President Donald Trump has issued a new executive order aimed at curbing “politicised” or unlawful discrimination by banks against customers based on political or religious beliefs.
The move follows a series of recent policies from the White House, including the imposition of 30% tariffs on imports from South Africa, which came into effect at midnight last night.
South African banks have previously come under fire for refusing access to banking facilities after citing risk.
In addition, it’s important to view this order in light of Trump’s dissatisfaction with South Africa over Broad-Based Black Economic Empowerment policies as well as reform through land expropriation.
Trump’s executive order responds to concerns that some financial institutions engaged in “debanking”- denying or restricting access to financial services for individuals or businesses based on constitutionally protected views or lawful activities.
The order specifically condemns practices linked to government surveillance after the January 6, 2021 Capitol events, where banks flagged customers’ transactions related to politically charged terms like “MAGA” or certain retailers without evidence of criminal conduct.
This order directs federal banking regulators to remove guidance that allows banks to use “reputation risk” as a justification for such politicised restrictions. It also mandates the reinstatement of clients unlawfully denied services and instructs regulators to take enforcement actions against offending institutions.
Meanwhile, the tariffs imposed on South African imports reflect ongoing tensions in bilateral trade relations. The 30% tariff increase was initially expected last week but was delayed to today as Trump variously changes his mind.
On Tuesday, President Cyril Ramaphosa and Trump spoke by telephone to discuss these trade matters further.
According to Vincent Magwenya, spokesperson for the South African Presidency, “the two leaders undertook to continue with further engagements recognising the various trade negotiations the US is currently involved in”.
He added that “respective trade negotiating teams will take forward more detailed discussions,” underscoring efforts to resolve longstanding trade imbalances.
Minister of Trade, Industry, and Competition, Parks Tau, said that no final trade agreement has yet been reached, even as tariffs officially took effect. The tariffs followed a formal letter from Trump several weeks ago demanding that South Africa address market access restrictions and trade imbalances.
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