South African exporters could lose duty-free access to the United States. On Monday, President Donald Trump notified Congress and the South African government that he intends to end the country's benefits under the African Growth and Opportunity Act (AGOA). Scrolla reported the move via AllAfrica. The removal would take effect on January 1, 2027, after a 60-day notice period.
AGOA gives eligible African countries duty-free access to the US market for more than 1,800 products. South African carmakers, farmers and manufacturers are among those that have benefited. US Trade Representative Jamieson Greer said the decision followed an annual review. He said Trump found that South Africa and Rwanda were engaging in practices that did not meet the eligibility rules. Washington cited barriers to US trade and investment and corruption in South Africa. It also cited threats to US national security and foreign policy interests. The US statement did not give detailed examples.
Trade Minister Parks Tau said South Africa would keep looking for a solution. "This decision does not define the broader relationship between South Africa and the United States, however a solution depends on the willingness of both Parties to find solutions," he said. The government says it has already offered concessions that respect its Constitution and World Trade Organisation rules. It says Washington has now raised new concerns that were not part of talks that began in 2025. Officials are working with businesses to assess the impact on companies and workers.
AGOA's share of South African exports to the US has already shrunk. According to the report, AGOA exports fell from about $4 billion in 2024 to $1.7 billion in 2025. Around 89% of exports to the US entered under ordinary WTO terms in 2025. Total trade between the two countries reached $28.8 billion that year. More than 600 American companies operate in South Africa, supporting about 134,600 jobs.
Trade union Solidarity and the group Lex Libertas blamed President Cyril Ramaphosa and International Relations Minister Ronald Lamola for the worsening ties. The government says it engaged extensively with Washington and made concessions. Relations have been strained for some time. Trump halted aid to South Africa in February 2025. Former ambassador Ebrahim Rasool was expelled from the US in March 2025.
In a Daily Maverick opinion piece, international relations strategist Redi Tlhabi argued that losing AGOA is not an economy-wide catastrophe. She urged Pretoria to publish a clear assessment of which exporters are exposed. She also called for support for affected workers and a push for export diversification. For now, Tau says talks with Washington will continue while the government prepares support for affected businesses.