The United States has announced plans to suspend South Africa and Rwanda from its flagship trade preference programme for sub Saharan Africa from 1 January 2027, a decision that threatens duty free access to the American market for key exports, including South African automotive components, citrus fruit and wine, as well as Rwandan coffee and minerals. US Trade Representative Jamieson Greer notified Congress of the decision on Monday, citing concerns over human rights, corruption, the rule of law and practices Washington considers threats to its national security and foreign policy interests. The two countries are currently beneficiaries of the African Growth and Opportunity Act (AGOA), which has been central to American economic engagement with the continent since its enactment in 2000.
Under the programme, eligible African countries receive preferential access to the US market for thousands of products without paying import duties. South Africa has been its largest beneficiary, exporting approximately US$1.7 billion worth of goods to the United States under AGOA in 2025. In a statement, Greer said President Donald Trump had determined that the governments of South Africa and Rwanda were engaging in practices inconsistent with the programme’s eligibility requirements. Washington said the decision reflected barriers undermining American trade and investment, alongside concerns about the countries’ domestic policies and conduct in the region.
For South Africa, the announcement represents another deterioration in an increasingly difficult relationship with the Trump administration. Washington has repeatedly criticised Pretoria’s domestic and foreign policies, including allegations of persecution against white South Africans, which the South African government has rejected. The United States has also taken issue with South Africa’s decision to institute genocide proceedings against Israel at the International Court of Justice. Israel denies the allegations.
The US ambassador to South Africa described the suspension as a regrettable but predictable outcome, arguing that the South African government had failed to address concerns raised by Washington. Pretoria, however, has maintained that its relationship with the United States extends beyond AGOA and that the programme’s termination will not bring bilateral economic engagement to an end. South Africa’s trade ministry said it would support sectors affected by the decision while continuing to pursue trade, investment and shared economic opportunities with the United States. It also indicated that the government would accelerate efforts to diversify export markets.
The ministry noted that AGOA accounted for approximately 10 per cent of South Africa’s exports to the American market and around one per cent of its total global exports. While the figures suggest that the programme does not underpin the country’s entire export economy, its removal could still expose particular industries and businesses to higher costs and reduced competitiveness. President Cyril Ramaphosa had previously acknowledged the possibility of South Africa losing its AGOA benefits, saying the country needed to prepare by pursuing alternative markets and strengthening trade relationships with other partners, including China.
Rwanda’s suspension comes against a different but equally complex geopolitical background. Washington has raised concerns about human rights and the rule of law in the country, while experts believe the decision is closely connected to the conflict in eastern Democratic Republic of Congo, where the United States has accused Kigali of supporting rebel forces. Rwanda has faced sanctions targeting individuals and institutions, including its military and a gold refinery. The country has also experienced restrictions under AGOA since 2018, when the United States partially suspended its eligibility over a dispute involving import tariffs on second hand clothing. That measure prevented Rwanda from exporting apparel to the American market under the programme. The latest decision would extend the consequences of the trade dispute beyond the clothing sector.
The move has drawn criticism from opposition figures in Washington. Representative Richard Neal, the senior Democrat on the House Ways and Means Committee, described the decision to remove South Africa as a trade measure driven by political grievance rather than responsible policy. He called on the administration to provide a fuller explanation and clarify what steps Pretoria could take to regain eligibility.
Ebenezer Obadare of the Council on Foreign Relations said South Africa would retain the ability to export to the United States, although on less favourable terms. He also suggested that the decision could encourage African countries to reconsider their dependence on American trade preferences and accelerate efforts to develop alternative commercial relationships.
The broader implications extend beyond the two countries. AGOA has served as an important instrument of US economic diplomacy, providing African exporters with preferential access to one of the world’s largest consumer markets. Its use as a mechanism for responding to political and foreign policy disagreements raises questions about the stability of trade arrangements and the extent to which economic access can remain insulated from diplomatic tensions.
For South Africa and Rwanda, the immediate challenge will be managing the potential costs to affected industries while securing alternative markets and maintaining commercial relationships with Washington. Although the programme’s benefits differ in scale for each country, the planned suspensions underline the growing intersection between trade policy, geopolitical interests and diplomatic alignment in US relations with Africa.
