The United States will remove South Africa and Rwanda from a preferential trade programme that allows eligible African countries to export thousands of products to the American market without paying import duties, US Trade Representative Jamieson Greer announced on Monday.
The decision, scheduled to take effect on January 1, 2027, follows a review of both countries’ eligibility under the African Growth and Opportunity Act (AGOA).
President Donald Trump determined that South Africa and Rwanda had failed to meet the programme’s requirements, citing policies that Washington considers harmful to American trade, investment and national interests.
“The governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA’s eligibility criteria,” Greer said in a statement.
South Africa stands to lose the most from the decision, having been the programme’s largest beneficiary. The country exported approximately $1.7 billion worth of goods to the United States under AGOA in 2025.
Washington raised concerns about restrictions on American businesses, corruption and policies it considers contrary to US national security and foreign policy interests.
Relations between Washington and Pretoria have deteriorated considerably under Trump’s administration.
The US president has repeatedly criticised South Africa over allegations of discrimination and persecution targeting white South Africans, accusations rejected by President Cyril Ramaphosa’s government.
Washington has also challenged Pretoria’s foreign policy positions, particularly its decision to bring a genocide case against Israel before the International Court of Justice. Israel denies the allegations.
Rwanda faces separate objections involving restrictions on American trade and investment, governance and the rule of law.
The East African country previously lost AGOA duty-free benefits for apparel exports in 2018 following a dispute over restrictions on imports of used clothing from the United States.
South African officials had anticipated a possible suspension.
Trade Minister Parks Tau said last week that Pretoria remained willing to negotiate with Washington and had prepared measures to protect the country’s economy.
According to the ministry, goods exported under AGOA account for approximately 10% of South Africa’s total exports to the United States and just 1% of its worldwide exports.
Ramaphosa has also acknowledged the possibility of losing preferential access to the American market, urging businesses to diversify export destinations.
His government has pursued alternative trade arrangements and stronger commercial partnerships with countries including China.
Established in 2000, AGOA provides qualifying sub-Saharan African economies with preferential access to the US market, subject to regular eligibility reviews.
The programme’s current authorisation expires on December 31, 2026, meaning continued benefits in 2027 would also depend on its renewal.
Neither South Africa nor Rwanda had issued an immediate response to Monday’s announcement.
