Trump’s AGOA move sparks alarm over SA jobs

US President Donald Trump has moved to remove South Africa from the African Growth and Opportunity Act (AGOA), threatening thousands of jobs in the country’s agricultural and manufacturing sectors.

The Trump administration announced on Monday, 2 November, that South Africa would lose its preferential trade benefits from 1 January 2027.

Rwanda also faces removal from the programme.

US Trade Representative Jamieson Greer confirmed that Trump had notified Congress and both governments of his intention to terminate their eligibility.

Washington accused South Africa of maintaining trade and investment barriers, corruption and policies it considers a threat to US national security and foreign policy interests.

The announcement follows months of strained relations between Pretoria and Washington.

South Africa responds to Trump’s decision

Trade, Industry and Competition Minister Parks Tau said government recognised the concerns raised by Washington’s announcement.

He said South Africa would accelerate efforts to find alternative export markets and protect jobs.

Government is pursuing opportunities across Africa, India, China and the European Union.

Tau maintained that although AGOA remained important, it did not represent the country’s entire economic relationship with the US.

According to government, approximately 89% of South African exports entered the American market under ordinary World Trade Organisation trading terms in 2025.

Thousands of jobs under threat

The decision has raised fears of job losses in agriculture and manufacturing.

Labour federation Cosatu warned that withdrawing South Africa’s trade benefits could place thousands of livelihoods at risk.

The citrus industry has also expressed concern about the impact on producers and workers, particularly in the Western and Northern Cape.

AGOA has allowed eligible African countries to export thousands of products to the US duty-free since 2000.

South Africa has been one of the programme’s largest beneficiaries.

The latest move does not immediately end all trade between South Africa and the US. However, affected exporters could face additional tariffs when the country’s AGOA benefits expire at the end of December.

The announcement comes despite months of negotiations between South African officials and Washington aimed at preserving the country’s preferential trade access.