After months of speculation, US finally shuts out South Africa, Rwanda from trade benefits across its $33 trillion market as Trump finalises AGOA decision

Key Points:

• US President Donald Trump has formally notified Congress and the governments of Rwanda and South Africa of his intention to remove them from the African Growth and Opportunity Act (AGOA) trade preference program, citing practices inconsistent with AGOA's requirements.
• The US Trade Representative highlighted concerns including trade and investment barriers, threats to US national security and foreign policy interests, and issues related to the rule of law, political pluralism, and human rights in Rwanda, while South Africa faces concerns over corruption and trade barriers.
• South Africa, the largest beneficiary of AGOA, exported about $1.7 billion worth of goods to the US under the program in 2025 and has been actively lobbying to retain its trade benefits by proposing measures to address US concerns.
• Rwanda has previously experienced AGOA restrictions, notably in 2018 when the US suspended duty-free treatment for its apparel exports due to Kigali's restrictions on used clothing imports from the US.
• While the termination would not end regular trade between the US and these countries, it would remove preferential tariff treatment, potentially making exports more expensive and less competitive in the US market.