Trump terminates South Africa and Rwanda from AGOA
United States President Donald Trump has formally notified Congress and the governments of South Africa and Rwanda of his administration’s intent to terminate their eligibility under the African Growth and Opportunity Act, dealing a severe blow to regional trade preferences starting January 1, 2027.
Trade Preferences Terminated Under Annual Eligibility Review
The Office of the United States Trade Representative announced the decision on November 2, following an interagency review of sub-Saharan African countries participating in the trade program. US Trade Representative Jamieson Greer stated in an official USTR press release that both governments were engaging in practices inconsistent with the statutory requirements of the agreement.
“These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region,” Greer said in the statement.
Established in 2000, the African Growth and Opportunity Act provides eligible nations with duty-free access to the US market for more than 1,800 products. While the overarching program has been extended through the end of 2028, individual country eligibility is subject to annual presidential review. Any removal requires a mandatory 60-day notice to Congress and the targeted nations.
Washington Cites Corruption and Security Concerns Regarding South Africa
The Trump administration cited distinct sets of grievances for each excluded nation. For South Africa, the largest beneficiary of the trade pact, Washington highlighted barriers to American investment, corruption, and concerns regarding US national security and foreign policy. South Africa exported approximately $1.7 billion worth of goods to the US under the program in 2025, spanning vehicles, agricultural products, clothing and manufactured goods.
🇺🇸🇷🇼🇿🇦 BREAKING: Trump Moves to Remove Rwanda From AGOA!President Donald Trump has notified Congress of his intention to terminate Rwanda and South Africa's access to the US preferential trade program, effective January 1, 2027.🇷🇼 Washington cited concerns over Rwanda's… pic.twitter.com/5HzwhdTsFZ
Relations between Washington and Pretoria have faced persistent friction. Last year, Trump accused South Africa of white genocide during a White House meeting with President Cyril Ramaphosa, a claim rejected by Pretoria, and subsequently launched a refugee pathway for Afrikaners. Leo Brent Bozell III, the US Ambassador to South Africa, asserted on social media that the termination was a predictable outcome resulting from the South African government’s rejection of American concerns.
For Rwanda, the administration pointed to trade barriers, human rights, the rule of law, and political pluralism alongside security threats. These economic measures follow intense pressure over the conflict in the eastern Democratic Republic of Congo. The US Treasury recently sanctioned the Rwandan defense ministry over its alleged backing of the M23 armed rebel group, which has seized mineral-rich territories in the DRC since 2021. Kigali has consistently denied supporting the militia, with Rwandan Foreign Minister Olivier Nduhungirehe telling reporters that his country should not serve as a perpetual scapegoat for internal Congolese security failures.
Loss of Preferential Tariffs Makes South African Exports Expensive
The pending exclusion will not outright prohibit trade between the United States and the two nations, but it will strip away preferential tariffs, making affected exports more expensive in the American market.
South African President Cyril Ramaphosa advised his administration to prepare for an adverse outcome weeks prior to the announcement. Trade, Industry and Competition Minister Parks Tau maintained that his country’s broader economy would remain resilient while seeking out alternative international markets. Total goods trade between the United States and South Africa reached $16.5 billion in 2025, but the loss of preference does not equal total economic collapse, provided exporters receive targeted logistical and administrative support.
Washington previously suspended duty-free treatment for Rwandan apparel in 2018 after Kigali restricted imports of used clothing from the United States.
Terminations Become Operational on January 1 2027
Unless unexpected diplomatic breakthroughs occur during the review window, the terminations will become fully operational on January 1, 2027.