According to the South African government, the recent tariffs imposed by President Donald Trump have essentially negated the advantages African countries receive under the African Growth and Opportunity Act (AGOA), which provides duty-free access to the U.S. market for qualifying African nations. AGOA is set to expire in September, and the implementation of Trump’s widespread tariffs indicates that a renewal of the trade agreement, introduced in 2000, is improbable.
During a press conference, South Africa's foreign and trade ministers mentioned that they might try to secure more exemptions and quota agreements with the U.S. while also exploring other export markets. The ministers stated that the tariffs will impact various sectors of the economy, such as the automotive industry, agriculture, processed food and beverage, chemicals, metal, and other manufacturing segments, with potential consequences for employment and economic growth.
The government plans to strategically invest in industries affected by the tariffs to support economic growth through upgrades and specific infrastructure developments.