US Elections: Is AGOA in trouble under Donald Trump's presidency?
South Africa's tariff-free access to US markets under the African Growth and Opportunity Act is up for renewal in September 2025. Its future hangs in the balance.
Freight containers with US, and SA flags, trade, America. Image: 123rf.com
On the Money Minute on 947, business journalist Zinathi Gquma discusses how Donald Trump's presidency can affect South Africa's economy.
Listen below.
AGOA (African Growth and Opportunity Act) enables African countries to export some products to the US without paying taxes.
South Africa is the largest exporter under the agreement.
AGOA is set to expire in September 2025.
US Congress is said to be working towards a long-term renewal, however, it could be hampered under Donald Trump’s administration.
During his first term, Trump said he would not renew the Act.
If AGOA is not renewed, economists expect South Africa's losses to total R55 billion, impacting manufacturing, employment, and the rand.
“It’s not necessarily that, under Trump, relations with Africa would be downgraded, but Trump just doesn’t really care about Africa.”
– Zinathi Gquma, The Money Minute