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US removes South Africa from AGOA trade programme

Published

South Africa loses duty-free access to the US market from January 2027. Exports under the African Growth and Opportunity Act (AGOA) were worth about $1.7 billion last year, and exporters will now pay higher tariffs.

The US government announced the removal on Monday. Deputy Trade Minister John Steenhuisen said South Africa will move to most-favoured-nation status, which adds roughly 3.5 percentage points to existing tariffs. He said the US has not closed its market to South African goods.

Steenhuisen said citrus and automotive exporters will feel the effect most. He urged a bilateral trade deal with the US and more export markets. Agricultural economist Wandile Sihlobo also said exporters keep access, but at higher tariffs. He said the higher tariffs do not necessarily mean disaster.

The Congress of South African Trade Unions (COSATU) said the government should use the 60 days before the exit to negotiate. Its parliamentary coordinator, Matthew Parks, said farmers in the Western Cape, Limpopo and Northern Cape are of most concern. He said jobs were already lost over the past year and a half because of changing US tariffs.

Saul Levin of Trade and Industrial Policy Strategies said the impact looks fairly limited. He said sectors hit by earlier tariffs, such as autos and fruit canning, will feel more pain from those.

Key facts

Who
Wandile Sihlobo (agricultural economist and presidential envoy); Congress of South African Trade Unions (trade union federation concerned about agricultural and manufacturing jobs); Trump administration (US government that announced the AGOA removal); Matthew Parks (COSATU Parliamentary Coordinator)
What
The US announced on Monday that South Africa would be removed from AGOA, ending duty-free access from 2027. AGOA exports were worth about $1.7 billion last year, and Wandile Sihlobo says South African exporters will still access the US market, though at higher tariffs.
When
2 November 2026
Where
South Africa, United States, Western Cape
Status
Reported

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