AGOA Benefits in Jeopardy: South Africa Responds to Trump's Tariffs

South Africa's government reacts to President Trump's tariffs, which could nullify benefits under the African Growth and Opportunity Act (AGOA). With AGOA's expiration looming, South African officials propose securing exemptions and diversifying export markets to mitigate economic impacts on various sectors.

South Africa's government has expressed concern over the recent tariffs announced by U.S. President Donald Trump, stating they effectively nullify the benefits African countries enjoy under the African Growth and Opportunity Act (AGOA).

The AGOA, providing duty-free access for African nations to the U.S. market since 2000, is set to expire in September. Trump's broad tariffs suggest a renewal of AGOA is unlikely. At a recent press conference, South Africa's foreign and trade ministers revealed plans to secure additional exemptions, seek quota agreements with the U.S., and explore alternative markets.

The ministers highlighted the tariffs' potential impact on South Africa's economy, particularly in the automotive, agriculture, processed food, chemical, and metals sectors. In response, the government intends to strategically invest in affected industries and bolster economic growth via modernization and infrastructure development.

(With inputs from agencies.)