Trump extends flagship US-Africa trade agreement for a year

US President Donald Trump has signed a one-year extension of the African Growth and Opportunity Act (AGOA). The trade preference programme grants 32 sub-Saharan African nations duty-free access to the American market. The renewal extends the pact until 31 December 2026 and applies retroactively to its previous expiration in September 2025. While the extension offers some relief to certain countries and industries, its short-term nature is unlikely to encourage capital investment from businesses hoping to benefit from the programme.

Enacted in 2000 under President Bill Clinton and extended twice previously, AGOA has been a cornerstone of US-Africa trade relations. Yet, there was widespread doubt over whether it would survive under the current administration. Trump's demand for mutual trade concessions stands in stark contrast to AGOA’s asymmetrical structure, which grants African nations tariff-free access to the US without requiring them to lower their own trade barriers in response.

In 2024, AGOA imports totalled US$8bn, down 13% from US$9.3bn in 2023. These imports remain highly concentrated in a few countries and industries. Crude oil imports stood at US$2bn in 2024, comprising 25% of all AGOA trade. Nigeria was the top supplier of crude oil to the US under the programme that year (US$1.6bn). Non-energy imports in 2024 were valued at US$6bn, with top categories including passenger vehicles (US$2.4bn), apparel (US$1.2bn), agricultural and food products (US$949m), base metals (US$711m), and chemicals (US$251m).

The extension offers a short-term reprieve for African exporters to the US. Those benefiting include Ghanaian cocoa producers, fruit canners in Eswatini, and Kenyan garment manufacturers – who currently rely on the U.S. for over 70% of their export market. In some smaller economies such as Lesotho inclusion in AGOA has helped attract investments in manufacturing. However, this impact is blunted by Trump’s "Liberation Day" tariffs, which supersede AGOA. Whether these sweeping global duties will actually remain in effect is now in doubt, following a landmark US Supreme Court ruling in February that struck them down as illegal. Furthermore, AGOA does not override the Section 232 tariffs Trump imposed on a range of products, including cars, steel, copper, aluminium, and pharmaceuticals.

African business has greeted the extension of AGOA with cautious optimism as investors seek greater clarity before making long term commitment. The market, however, welcomed the inclusion of South Africa in the AGOA extension. Although South Africa is one of the biggest beneficiaries of the programme and the top African exporter of non-oil products to the US, diplomatic friction with Washington had led many to anticipate its removal from AGOA. Bilateral relations have deteriorated over South Africa’s deepening ties with Russia and China, as well as its high-profile decision to bring genocide charges against Israel at the International Court of Justice over the war in Gaza. Compounding the friction, President Trump has publicly accused the South African government of ‘unjust’ racial discrimination against white citizens. For many US lawmakers, these actions signalled that Pretoria had abandoned its "partner" status.

South Africa’s automotive sector has historically anchored the country’s AGOA exports, leveraging duty-free access to secure a critical pricing edge over international rivals within the American market. Vehicles from brands like Mercedes-Benz, BMW, and Ford are assembled domestically and shipped directly to the US. South African vehicle manufacturers accounted for 64% of the country's total AGOA shipments in 2024, driving US$1.6bn in export revenue for the year. However, that lucrative pipeline was abruptly throttled in 2025 by aggressive US protectionism. In April, the Trump administration instituted a 25% tariff on all imported fully-built vehicles. The export environment then deteriorated even further in August, when Washington slapped a sweeping 30% blanket tariff on all South African goods. These duties devastated trade, driving South African car exports to the US down by 74.4% for the year.

US trade representative Jamieson Greer characterised the brief extension of AGOA as a bridge to modernise the programme. He indicated that the administration will work with Congress over the next year to align AGOA with Trump’s "America First" agenda, focusing on asking more of African trading partners and securing greater market access for American businesses. The extension of AGOA, therefore, is not simply an international trade story. It sits at the intersection of both domestic politics as well as geopolitics as Washington sees it as a tool to counter China’s expanding influence over the continent.

 

References

'South African car exports to US plunge as Trump tariffs bite', Reuters, 14 July 2025

'Expiry of AGOA and its implications for Kenya and Tanzania', Afriwise, 22 October 2025

'The impact of US trade tariffs on SA's economy', Nedbank, 12 November 2025

'Statement from Ambassador Jamieson Greer on the reauthorization of the African Growth and Opportunity Act', Office of the United States Trade Representative, 3 February 2026

'Resuscitation of AGOA gets few cheers in SA', Daily Maverick, 4 February 2026

'SA is still in AGOA, but additional tariffs likely nullify the benefits', City Press, 7 February 2026

'Trump's one-year African Growth Act extension offers brief, fragile trade reprieve', Reuters, 4 February 2026

'South Africa farm exports hit record even as US shipments crash', Bloomberg, 9 February 2026

'African Growth and Opportunity Act (AGOA)', Congressional Research Service, Accessed 21 February 2026