South Africa: Trump Trade Axe Hangs Over South African Exporters

What the report says

South Africa is bracing for a possible loss of duty-free access to the US market after President Donald Trump notified Congress and Pretoria that he plans to end the country’s benefits under the African Growth and Opportunity Act, or AGOA, from 1 January 2027. The notice, reported by Scrolla and distributed by AllAfrica, gives South Africa 60 days before the proposed change takes effect. Trade, Industry and Competition Minister Parks Tau said the government will keep negotiating with Washington while assessing the possible effects on exporters, workers and businesses.

AGOA has been an important trade channel for South African carmakers, farmers and manufacturers, although the report notes that a smaller share of exports now enters the US under the programme than a year earlier. South Africa and the US still maintain a large broader trade relationship, and the government says it is working with business to understand the impact of any loss of AGOA preferences.

According to the article, US officials linked the decision to an annual eligibility review and raised concerns about barriers to trade and investment, corruption and broader national security and foreign policy issues. Pretoria disputes some of those concerns and says it has already offered concessions within constitutional and World Trade Organisation limits. The government is also trying to widen export markets beyond the US, while unions and advocacy groups have blamed South African leaders for the strained relationship.