US President Donald Trump has announced plans to remove South Africa from the African Growth and Opportunity Act (AGOA), a decision that could potentially threaten thousands of jobs in the country’s agricultural and manufacturing sectors. This move, expected to take effect on January 1, 2027, will end South Africa’s preferential trade access to the US market under the program.
The Trump administration revealed the decision on November 2, with US Trade Representative Jamieson Greer confirming that Congress and the governments of South Africa and Rwanda have been notified about the planned termination of their eligibility. The US cited concerns over trade and investment barriers, corruption, and policies in South Africa that are seen as contrary to US national security and foreign policy interests. Rwanda is also facing removal from the program.
In response, South Africa’s Trade, Industry and Competition Minister Parks Tau stated that the government is aware of Washington’s decision and will intensify efforts to diversify export markets to protect 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 emphasized that while AGOA is an important trade arrangement, it is not the foundation of South Africa’s entire economic relationship with the United States. In 2025, approximately 89% of South African exports entered the US market under standard World Trade Organization trading terms.
The potential withdrawal has raised concerns about possible job losses, particularly in the agriculture and manufacturing sectors. The labour federation COSATU has warned that losing preferential trade access could jeopardize thousands of livelihoods. South Africa’s citrus industry is also worried about the potential impact on exporters, agricultural producers, and workers, particularly in regions like the Western Cape and Northern Cape.
Established in 2000, AGOA provides eligible African countries with duty-free access to the US market for thousands of products, and South Africa has been one of the program’s 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 expires at the end of December 2026.