South Africa braces for loss of US trade benefits
South Africa must prepare for exclusion from Washington’s preferential trade program for African countries, President Cyril Ramaphosa warned amid deteriorating relations with the US.
Speaking to journalists on Monday, Ramaphosa said his government is discussing South Africa’s continued participation in the African Growth and Opportunity Act (AGOA) with Washington.
“Congress has decided that we should be kept in AGOA. What now remains is the executive,” he said. “I need, as president, to prepare us if it ever happens.”
AGOA has granted eligible African countries duty-free access to the US market for thousands of products since 2000. US President Donald Trump signed an extension through 2028 last month, although individual countries’ eligibility remains subject to review. South Africa remains eligible.
Ramaphosa warned that exclusion would have a “devastating” impact on jobs, with vehicle manufacturing and agricultural exports among the sectors reliant on access to the US market.
US lawmakers have pushed to strip South Africa of its AGOA benefits over foreign policy, including its ties with Russia and Iran and its genocide case against Israel at the International Court of Justice.
Relations have deteriorated since Trump returned to office in January 2025. He has accused the South African government of allowing “white genocide,” which Pretoria has dismissed as misinformation.
Washington halted aid in February 2025, expelled South African Ambassador Ebrahim Rasool the following month, and imposed a 30% tariff on South African goods that August.
The US is the country’s second-largest trading partner after China, according to the South African government. Ramaphosa has described his country as the biggest African investor in the US. Bilateral goods and services trade reached $28.8 billion in 2025, up 10.1% from 2024, according to the US Trade Representative.
On Monday, Ramaphosa said he and Deputy President Paul Mashatile are seeking alternative markets, pointing to China’s offer of “the opportunity to be able to export our goods on a tariff-free basis.” Pretoria has also revived preferential trade talks with India.
China effectively eliminated tariffs on nearly all goods (97% to 100% of tariff lines) from 53 African countries from May 1, expanding preferences previously reserved for the least developed nations. Chinese President Xi Jinping initially announced the expansion during a televised address to the 39th African Union Summit on February 14.
