South Africa’s government stated on Friday that the tariffs announced by President Donald Trump this week have effectively nullified the advantages African countries receive under the U.S. trade initiative, the African Growth and Opportunity Act (AGOA).
AGOA, which provides qualifying African nations with duty-free access to the U.S. market, is set to expire in September. The tariffs introduced by Trump cast doubt on the likelihood of renewing the trade agreement, which was established in 2000.
During a press conference, South Africa’s foreign and trade ministers expressed concerns that the new tariffs would significantly impact various sectors of the South African economy, including automotive, agriculture, processed food and beverages, chemicals, metals, and manufacturing. These sectors could face severe consequences, including job losses and slow economic growth.
The ministers added that the South African government may seek exemptions or quota agreements with the U.S. and work to diversify its export markets to mitigate the impact.
“The sweeping tariff measures will affect several sectors of our economy,” the ministers stated in a joint press release. “The government will strategically invest in industries affected by the tariffs, focusing on modernization and targeted infrastructure development to support economic growth.”