Trump moves to drop South Africa and Rwanda from AGOA duty-free trade program from January 2027

In brief

• US President Donald Trump has notified Congress that South Africa and Rwanda will lose duty-free access under AGOA from 1 January 2027.
• The US trade representative cited trade barriers, security concerns and, for Rwanda, human rights issues.
• South Africa exported more than $1.7 billion in goods under AGOA in 2025, and exporters fear job losses.

Notice to Congress and the timeline

US President Donald Trump has informed Congress that he intends to terminate South Africa and Rwanda from the African Growth and Opportunity Act, known as AGOA, starting 1 January 2027 (Donald Trump uderza w dwa państwa Afryki. Chce je usunąć z ważnego programu – Business Insider Polska) (Trump to remove Rwanda and South Africa from US trade deal – BBC News). The decision was announced on Monday by US Trade Representative Jamieson Greer, who said the two governments were engaging in practices inconsistent with the program's eligibility criteria (US to drop South Africa, Rwanda from duty-free trade initiative – DW). The administration has also formally notified both governments of the decision.

The reasons Washington gives

Greer cited trade barriers that, in his account, hurt American commerce and investment, along with conduct that he said endangers US security and foreign policy goals in the region. The statement did not give specific examples of those barriers or security issues.

Context: sanctions and the Congo conflict

The move follows roughly a week after the US Treasury imposed sanctions on Rwanda's defence ministry over its alleged involvement in the armed rebellion in eastern Democratic Republic of the Congo. Relations between Washington and Pretoria have also been strained; last year Trump accused South Africa of committing white genocide during a White House meeting with President Cyril Ramaphosa.

What is at stake for exporters

South Africa shipped goods worth more than $1.7 billion, about €1.5 billion, to the US under AGOA in 2025. South African and Rwandan exporters are weighing possible job losses and narrower margins, according to reports from the region (Washington excludes South Africa and Rwanda from US duty-free trade deal – France 24) (South Africa braces for some job losses as AGOA ends – France 24). Economists have cautioned against alarmist reactions and argue the wider economic fallout is likely to be limited. The program covers more than 1,800 products, and the exclusion ends duty-free treatment for both countries' goods in that market (South Africa and Rwanda lose access to U.S.' AGOA trade pact – The Japan Times).

Next steps

The decision is not yet final in practice: the removal takes effect only at the start of 2027, and AGOA itself is subject to regular review, having been extended by Trump in February. Germany's public broadcaster also reported the planned exclusion, noting it would take effect at the turn of the year (Handelspolitik - USA schließen Südafrika und Ruanda aus AGOA-Programm aus – Deutschlandfunk).