South African President Cyril Ramaphosa said on Monday that South Africa should prepare for possible removal from Washington's duty-free African trade programme. Ramaphosa issued the warning during a briefing as relations between South Africa and the United States continued to deteriorate. South Africa is the largest beneficiary of the African Growth and Opportunity Act (AGOA).
AGOA grants eligible sub-Saharan African countries preferential access to the US market. The programme has been renewed until the end of 2028. Ramaphosa said Congress had decided to keep South Africa in AGOA. The pact now requires President Donald Trump's signature following congressional approval. Ramaphosa said South Africa would not be the first country removed from AGOA and expressed confidence that South Africa would not be the last.
The US president reviews countries' eligibility for AGOA annually. Any removal requires 60 days' notice to Congress and the country concerned. An exclusion must be announced by November 2 to take effect on January 1. Former president Joe Biden declared the Central African Republic, Gabon, Niger and Uganda ineligible on October 30, 2023. Those exclusions took effect on January 1, 2024.
Ramaphosa said South Africa would seek alternative markets to minimise the impact of exclusion. Ramaphosa said exclusion would not mean the end of the world. However, Ramaphosa acknowledged that the consequences would be devastating. Washington exempts South African cars from customs duties under AGOA. South African tax authorities identify cars as South Africa's second-largest export earner to the United States after precious metals. Automobile employers' organisation Naamsa said in 2025 that 86,000 jobs at car manufacturers were directly tied to the accord. Naamsa said the number rose to 125,000 when subcontractors were included.
South Africa's eligibility has come under scrutiny as Washington increases criticism of Pretoria, including false allegations of discrimination against white Afrikaners that South Africa rejects. Bilateral relations have deteriorated since Trump took office. Washington has cut aid and expelled South Africa's ambassador. Trump berated Ramaphosa in the Oval Office over discredited claims of a "white genocide".
Washington announced visa restrictions in mid-September for South Africans who promote race-based discrimination, incite violence or enable land confiscation without compensation in South Africa. Those issues are disputed between South Africa and the United States. The United States launched a programme last year to resettle white Afrikaners who say they face persecution and violent crime in South Africa. The United States had admitted 16,287 South Africans under the programme over the year preceding September 30. Those South Africans were the only people Washington granted refugee status during that period, apart from five Afghans.
South Africa Warns of Possible AGOA Exclusion Amid Tensions with US
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Summary
South Africa faces possible AGOA exclusion as tensions with the US escalate. President Ramaphosa urged readiness for trade consequences. Washington accuses Pretoria of racial bias, while South Africa denies claims. The US has cut aid, expelled the ambassador, and imposed visa restrictions. Ramaphosa said alternative markets would be sought. Traders are monitoring altcoins to watch amid shifting trade dynamics. The fear and greed index reflects market uncertainty as global trade relations tighten.
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