The Trump administration has announced plans to cut South Africa’s access to the African Growth and Opportunity Act (AGOA), a move that threatens thousands of jobs in the nation’s agricultural and manufacturing sectors. The decision, scheduled to take effect on January 1, 2027, will end South Africa’s preferential access to the U.S. market under this trade program.
U.S. Trade Representative Jamieson Greer confirmed on November 2 that President Trump had notified Congress and the governments of both South Africa and Rwanda regarding their impending removal from AGOA eligibility. The U.S. cited concerns about South Africa’s trade and investment barriers, corruption, and policies that are perceived as contrary to U.S. national security and foreign policy interests. Rwanda is also slated for removal from the program.
In response, South Africa’s Trade, Industry and Competition Minister Parks Tau stated that the government would intensify efforts to diversify export markets and safeguard domestic employment. The South African government is exploring opportunities to strengthen trade relations with other regions and countries, including Africa, India, China, and the European Union. Tau noted that while AGOA is an important trade arrangement, it does not form the entirety of South Africa’s economic relationship with the U.S., with around 89% of exports entering the U.S. market under standard World Trade Organization terms in 2025.
The potential withdrawal from AGOA has sparked concerns about job losses, particularly in agriculture and manufacturing. Labour federation COSATU warned that the loss of preferential trade access could jeopardize thousands of livelihoods. The citrus industry, a significant sector within South Africa, has expressed worries about the potential impact on exporters, agricultural producers, and workers, especially in the Western Cape and Northern Cape.
AGOA, established in 2000, provides eligible African countries with duty-free access to the U.S. market for thousands of products, making South Africa one of its major beneficiaries. Although the proposed decision will not halt all trade between the two countries, South African exporters could face additional tariffs once their preferential access ends at the close of December 2026.