Trump Moves to Remove South Africa From US Preferential Trade Programme, Rwanda Also Affected

US President Donald Trump has moved to terminate South Africa’s participation in the African Growth and Opportunity Act (AGOA), threatening the country’s preferential duty-free access to the American market from January 1, 2027.

The decision, announced on November 2, 2026, also affects Rwanda, with the Trump administration notifying the US Congress and both governments of its intention to withdraw their eligibility under the trade programme.

US Trade Representative Jamieson Greer said the decision followed an annual review of participating sub-Saharan African countries and concerns that South Africa and Rwanda were engaging in practices inconsistent with AGOA’s eligibility requirements.

According to the US administration, its concerns regarding South Africa include barriers to American trade and investment, corruption, and practices it considers threats to US national security and foreign policy interests.

AGOA, established in 2000, provides eligible African countries with preferential access to the US market, allowing thousands of products to enter without certain import duties. South Africa has been among the programme’s largest beneficiaries.

According to Reuters, South Africa exported approximately $1.7 billion worth of goods to the United States under AGOA in 2025, including automotive products and agricultural commodities.

The proposed withdrawal has raised concerns among South African businesses and industry groups over its potential implications for exports, investment and employment, particularly in agriculture and manufacturing.

South Africa’s government has challenged Washington’s decision, arguing that it had made concessions during negotiations aimed at addressing American trade concerns. Pretoria also accused the US of introducing new issues that were not previously part of the discussions.

Trade, Industry and Competition Minister Parks Tau said the government would continue seeking a negotiated solution while supporting affected industries and exploring alternative export markets.

South Africa is also pursuing stronger trade opportunities across Africa, Asia, Europe and other international markets to reduce its dependence on preferential access to the American economy.

The proposed withdrawal does not mean an end to trade between South Africa and the United States. Rather, it would remove the country’s preferential treatment under AGOA, potentially increasing import costs for affected South African products entering the American market.

The development represents another setback in relations between Washington and Pretoria, following months of diplomatic and economic disagreements.

Both South Africa and Rwanda are expected to lose their AGOA eligibility from January 1, 2027, subject to the completion of the announced withdrawal process.

Donald Trump moves to remove South Africa and Rwanda from the AGOA trade programme from January 2027, threatening preferential duty-free access to the US market.