Rwanda and South Africa Lose AGOA Access From January 2027

Rwanda and South Africa will lose their African Growth and Opportunity Act (AGOA) preferences on Jan. 1, 2027, a decision that covers roughly $1.7 billion in annual South African exports to the U.S., including apparel, cars and agricultural goods. USTR Ambassador Jamieson Greer announced the move on Monday, saying President Donald Trump had notified Congress and both governments of the termination.

The ruling came out of USTR's annual interagency review of sub-Saharan African countries' eligibility. "President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA's eligibility criteria," Greer said in a statement. He cited "barriers that undermine American trade and investment and practices that pose a threat to U.S. national security and foreign policy interests in the region," adding that the administration "is working to ensure our African partners take the necessary steps to meet the eligibility criteria."

What triggered Rwanda's removal?

For Rwanda, the USTR said it is "deeply concerned" about alleged barriers to trade and investment, human rights and worker rights challenges, political pluralism and adherence to the rule of law. That's the formal language. The geopolitics are more specific.

Washington has taken issue with Kigali's continued backing of the M23 rebel group in the Democratic Republic of Congo. Just last week, the U.S. Treasury Department sanctioned Rwanda's Ministry of Defense, stating that Rwanda has supported the "deployment of thousands of troops and provision of military equipment, logistics, and training." The Kigali government denies the accusations.

There's precedent here, and apparel sourcing managers will remember it. Rwanda lost AGOA eligibility in 2018, during Trump's first term, over its restrictions on imports of used apparel from the U.S. The country returned to the program, and now exits again.

Why South Africa?

South Africa's case centers on what Greer's office described as barriers to U.S. trade and investment, alleged corruption, and threats to American national security and foreign policy interests. The decision follows months of escalating tension.

Last week, Washington excluded South Africa from a Group of 20 meeting in Atlanta, Ga. In September, the administration announced travel bans on South African officials it claims have discriminated against Caucasians — an issue championed by Elon Musk, who claims white South Africans are routinely persecuted. The South African government denies the claim.

Congress has added its own pressure. Last year, Republican lawmakers backed legislation to remove South Africa from AGOA over its strategic partnerships. The country is a founding member of the BRICS Alliance alongside Brazil, Russia, India and China, and it has resisted U.S. pressure to distance itself from Iran in recent months.

How exposed are South African exporters?

By the numbers, the exposure is real but narrowing. South Africa, the continent's largest economy, has shipped goods duty-free to the U.S. under AGOA since President Bill Clinton signed the program into law in 2000. In 2025, it exported about $1.7 billion worth of products under the preference, spanning apparel, vehicles, agricultural goods and other manufactured items.

Yet utilization was already slowing. Last year, about 89 percent of South African exports to the U.S. entered under most favored nation terms, while only 10 percent entered under AGOA — down from 28 percent in 2024.

Complicating the legal picture, Congress voted to extend South Africa's eligibility through 2028 as part of the Continuing Appropriations and Extensions Act for 2027. Trump, however, holds the final say on eligibility.

What have South Africa's leaders said?

President Cyril Ramaphosa, sensing the potential ouster, has advised businesses in recent weeks to prepare for the loss of duty-free benefits. "We are not the first and only country to be taken out of AGOA. And I believe we will not be the last," he said.

The government's formal response followed on Monday: "AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States."

Trade Minister Parks Tau struck a similar note. "This decision does not define the broader relationship between South Africa and the United States, however a solution depends on the willingness of both Parties to find solutions," he said. "At the same time, government will support affected sectors, protect South Africa's national interests and continue pursuing trade, investment and shared economic opportunities with the United States."

What should sourcing teams do now?

For buyers with South African and Rwandan supply chains, the clock runs out Jan. 1, 2027. Apparel and manufactured goods currently entering duty-free under AGOA will shift to MFN tariff lines unless Washington reverses course or Pretoria and Kigali change the practices the USTR flagged. Sourcing directors should re-cost those programs against MFN rates now, weigh alternative AGOA-eligible origins within the region, and watch for whether eligibility becomes a recurring lever in U.S.-Africa trade negotiations.