South African exporters have avoided losing access to the African Growth and Opportunity Act after US President Donald Trump signed a three-year extension of the trade programme.
The new law keeps AGOA in place until the end of 2028. South Africa was not singled out in the final legislation, despite earlier calls in the US for the country to be excluded.
The Department of Trade, Industry and Competition confirmed that Trump signed the extension into law on Wednesday.
AGOA survives, but benefits are weaker
AGOA gives more than 30 African countries duty-free access to the US market for qualifying goods without requiring the same treatment for American exports.
However, its value to South Africa has been reduced by tariffs introduced during Trump’s presidency.
South Africa was initially hit with a 30% tariff under Trump’s reciprocal tariff programme. After the US Supreme Court ruled against the scheme, the rate fell to 10%.
A new 12.5% tariff linked to alleged weak enforcement of forced labour restrictions was later introduced.
Certain products face even higher duties. Cars, automotive components and aluminium remain subject to 25% Section 232 tariffs, which override AGOA preferences.
Vehicle exports take a hit
South Africa exported R32 billion worth of vehicles and automotive components to the US in 2024.
According to News24, that figure fell to R18 billion last year after the higher tariffs took effect.
AGOA still provides some relief because it removes the additional Most Favoured Nation tariff that would otherwise apply on top of existing duties.
Precious metals have helped limit the impact on overall trade. More than half of South Africa’s exports to the US by value are precious metals, which are tariff-free.
So far this year, South Africa has exported about R47 billion in precious metals to the US.
SA maintains trade surplus
Some agricultural exports, including certain oranges, fruit juices, nuts, guavas, mangoes and papayas, are also exempt from the 12.5% tariff. Wine and table grapes are not.
South Africa has exported almost R92 billion in goods to the US so far this year, compared with about R84 billion in imports.
The country has spent more than a year trying to secure a broader trade agreement with Washington, but major differences remain.
AGOA was first signed into law by former US President Bill Clinton in May 2000.