US President Donald Trump has notified Congress of his intention to remove South Africa and Rwanda from a preferential trade programme, from 1 January 2027, according to BBC. The African Growth and Opportunity Act (AGOA) allows eligible African countries to export thousands of products to the US duty-free. US Trade Representative Jamieson Greer said in a statement that an annual review had found that both countries were engaging in practices inconsistent with the programme’s eligibility requirements.

Concerns Over Trade and Foreign Policy

Greer added that the Trump administration had additionally notified the two countries of the decision. The Trump administration cited barriers to US trade and investment, as well as concerns over national security and foreign policy interests in the region. In Rwanda’s case, Washington also raised concerns about human rights, political pluralism, the rule of law and workers’ rights.

The move comes barely a week after Rwanda’s defence ministry was hit with sanctions by US Treasury for its alleged role in the armed rebellion in eastern DR Congo. The US Treasury said Rwanda’s defence ministry directed thousands of troops to fight alongside M23 rebels in eastern DR Congo, providing weapons, equipment, logistics and training.

Strained Relations and Economic Impact

For South Africa, the US additionally pointed to corruption. “The Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria,” Greer said. The announcement comes amid strained relations between Washington and both countries, with the proposed termination threatening their access to preferential trade arrangements with the US.

Last year, Trump accused South Africa of white genocide in a meeting with President Cyril Ramaphosa at the White House and launched a US refugee pathway for Afrikaners. US Ambassador to South Africa Leo Brent Bozell III said it was regrettable that South African policies led to its termination from AGOA. “This was a predictable and preventable outcome resulting from the rejection by South Africa’s government of real concerns raised by the US,” he wrote on X.

Economic Implications for South Africa

South Africa has been AGOA’s largest beneficiary, with $1.7 billion worth of goods like car parts, citrus fruit and wine exported to the US under the program in 2025, according to DW. South Africa’s Trade Ministry said last week that it was prepared for the decision, adding that AGOA exports comprise only about 10% of its total exports to the US and 1% of its total global exports.

“AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States,” it said in a statement. In recent weeks, President Cyril Ramaphosa has also said South Africa must prepare for being excluded from AGOA by seeking new markets and trade deals with partners like China. On Monday, the South Africa government said the US remains an important trade partner and it would provide support for affected sectors.

South Africa’s export-dependent citrus industry warned that its entire value chain on both sides of the Atlantic is now under threat, and warned that jobs and the economic security of entire communities is now at stake.