Trump threatens South Africa and Rwanda exports by revoking 'AGOA' privileges

The United States announced its intention to end South Africa and Rwanda's eligibility for tariff exemptions under the 'AGOA' program starting January 2027, a move that could affect exports to the US market, including auto parts and wine from South Africa and coffee from Rwanda.

The United States announced its intention to end South Africa and Rwanda's eligibility for tariff exemptions under the 'AGOA' trade program, effective January 1, 2027. The decision threatens the trade privileges both countries have enjoyed for years, but does not mean a halt to their exports to the US, rather the loss of preferential tariff treatment. The office of US Trade Representative Jamieson Greer stated that the administration concluded that the governments of South Africa and Rwanda are following practices inconsistent with the program's eligibility criteria, citing barriers to US trade and investment, as well as concerns related to national security and US foreign policy interests. The 'AGOA' program, enacted in 2000, allows eligible sub-Saharan African countries to export thousands of products to the US market duty-free.