South Africa to lose tariff-free US access under Agoa trade pact

South Africa will be excluded from the tariff-free provisions of the African Growth and Opportunity Act starting next year, the United States government has announced.

US Trade Representative Jamieson Greer stated that President Donald Trump opted to end South Africa's eligibility because the country engaged in actions contrary to the trade program's standards. Greer cited administration concerns over obstacles facing US trade and investment, domestic corruption, and perceived challenges to American national security and foreign policy interests.

The decision has provoked sharp concern across South Africa's agricultural and manufacturing sectors. The Congress of South African Trade Unions warned that the exclusion threatens thousands of positions, pointing to existing employment pressures in towns such as Cape Town, Atlantis, Malmesbury, and Tulbagh.

The citrus sector voiced strong alarm over the measure. Gerrit van der Merwe, chair of the Citrus Growers Association, warned that removing duty-free status exposes local citrus to baseline US duties ranging from 1.5 to 2.5 cents per kilogram, alongside a 12.5% Section 301 levy applied to varieties other than oranges. He noted that towns like Citrusdal depend heavily on access to the American market, warning that growers cannot quickly shift crops cultivated specifically for US standards and tastes to other destinations. Association head Boitshoko Ntshabele added that American shoppers would also feel the effects, as South African producers supply fruit during the US counter-season.

South African Minister of Trade, Industry and Competition Parks Tau noted that the government has a 60-day window to challenge the determination prior to any formal suspension taking effect. Tau stated that authorities had previously engaged constructively and offered trade adjustments to address American concerns, expressing disappointment over the introduction of new grievances.

Tau emphasized that the country's broader trade profile extends beyond the pact. In 2025, Agoa-eligible goods accounted for approximately $1.7 billion, representing 10% of South African exports bound for the US and roughly 1% of total global exports. Bilateral commerce totaled $28.8 billion that year, supported by more than 600 American firms operating locally. Tau stated that South Africa will continue expanding other export channels while supporting impacted businesses, noting that South Africa supplies critical minerals and medical isotopes to the US.

Agricultural policy analyst Wandile Sihlobo noted that the removal is not a total embargo. He explained that South African goods will face general Most Favoured Nation tariffs averaging roughly 3.4% on top of existing measures, lifting some rates from 12.5% to 15.9%. While acknowledging reduced competitiveness, Sihlobo maintained that local exporters have previously navigated higher tariff hurdles.