President Cyril Ramaphosa warned South Africa must prepare for potential exclusion from the United States’ African Growth and Opportunity Act (AGOA) duty-free scheme as diplomatic ties deteriorate.
Ramaphosa confirmed his administration is holding discussions with U.S. counterparts while actively mapping contingency plans.
“I need, as president, to prepare us if it ever happens,” Ramaphosa said on Monday, admitting the economic impact on domestic employment would be “devastating”.
The U.S. administration under President Donald Trump has targeted Pretoria following allegations regarding domestic minority rights, charges South Africa’s government firmly rejects as false claims originating from fringe political groups.
Exclusion from AGOA endangers South Africa’s major export earners, particularly its automotive industry, which directly supports 86,000 manufacturing jobs and up to 125,000 total jobs including sub-contractors, according to employer group Naamsa.
Vehicles remain the country’s second-biggest export to the U.S. after precious metals, relying heavily on AGOA’s complete tariff exemptions.
Any U.S. executive decision to revoke benefits requires a mandatory 60-day congressional notice before taking effect on January 1.
To cushion potential fallout, Pretoria is accelerating trade diversification, citing China’s implementation of a zero-tariff scheme on select South African imports in May as a key alternative pipeline.
