The Trump administration has announced plans to remove South Africa from the African Growth and Opportunity Act (AGOA), ending its preferential duty-free access to the U.S. market effective January 1, 2027.
U.S. Trade Representative Ambassador Jamieson Greer said the decision followed an eligibility review that found South Africa was engaging in practices inconsistent with AGOA requirements. He cited barriers to American trade and investment, corruption, and concerns involving U.S. national security and foreign policy interests.
U.S. Ambassador to South Africa Leo Brent Bozell called the decision a “predictable and preventable outcome,” blaming the South African government for rejecting concerns raised by Washington. He said he remained hopeful that the two countries could find a way forward.
South Africa exported approximately $1.7 billion in goods to the United States under AGOA in 2025, making it the programme’s largest beneficiary.
The hardest-hit industries are expected to include agriculture and manufacturing, particularly citrus, wine, fruit juice, automotive components, steel and textiles. Citrus growers alone have warned that approximately 35,000 jobs could be affected.
Estimates of potential job losses vary. COSATU parliamentary coordinator Matthew Parks cited estimates of approximately 3,000 to 10,000 jobs, while broader economic modelling has warned that as many as 576,000 jobs could be exposed when indirect employment and wider U.S. trade are included.
Although South Africa can continue exporting to the United States, losing AGOA benefits means exporters will face less favourable tariff conditions and increased competition. Pretoria now faces pressure to negotiate with Washington and find alternative export markets.
The decision is another setback for already strained diplomatic and economic relations between the two countries.
