Nokukhanya Mntambo4 April 2025 | 10:32

US reciprocal tariffs effectively nullify AGOA, says Lamola

AGOA, which was established in 2000, gives eligible African countries exemption from taxes on their exports to the US.

US reciprocal tariffs effectively nullify AGOA, says Lamola

FILE: International Relations Minister Ronald Lamola during a briefing on 12 August 2024. Picture: @DIRCO_ZA/X

JOHANNESBURG - South African officials have confirmed that the United States's reciprocal tariffs imposed by President Donald Trump this week effectively nullify the preferential trade deals, including the Africa Growth and Opportunity Act (AGOA).

AGOA, which was established in 2000, gives eligible African countries exemption from taxes on their exports to the US.  

READ: SA govt must carefully consider options on US tariffs, say economists

But Trump’s announcement about global tariffs on trade partners left AGOA and Sub-Saharan Africa’s participation in limbo.

With a few exemptions, South African exports to the US will now carry a 31% duty.

Minister of Trade and Industry Parks Tau and the Minister of International Relations, Ronald Lamola, held a joint press conference responding to global developments in Midrand on Friday.

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While the US is yet to formally announce the future of AGOA, Lamola said the writing was on the wall.

"The reciprocal tariffs effectively nullify the preferences that sub-Saharan African countries enjoy under the Africa Growth and Opportunity Act. The sweeping tariff measures will affect several sectors of our economy, including the automotive industry, agriculture, processed food and beverage, chemical, metals, and other segments of manufacturing, with implications for jobs and growth."