South Africa will remain as part of the African Growth and Opportunity Act (AGOA) for the time being, benefitting the country’s vehicle and automotive part exports.
Under AGOA, more than 1 800 South African products and goods were exported to the United States duty-free.
This decision was welcome by amongst others, the Motor Industry Staff Association (MISA), stating that the suspension of AGOA severely impacted South Africa's vehicle and part exports in 2025, plummeting by 55% to 80% year-on-year, falling from R26.5 billion (Jan-July 2024) to R9.8 billion in 2025.
Martlé Keyter, MISA’s Chief Executive Officer: Operations, says from the beginning of August 2025, South Africa was subjected to a 30% blanket tariff, which further increased the cost for US businesses importing vehicles from South Africa. This put South Africa at a significant disadvantage compared to other countries exporting vehicles to the United States, which only pay 25%.
Dawie Roodt, Founder and Chief Economist of the Efficient Group, told MISA that it is in the best interest of the South African automotive industry to be included in AGOA. “This means that Government should remain neutral on international issues where the US are involved instead of taking an opposing position in the best interest of the economy,” he says.
The South African Government is accused of pursuing a balancing act, trying to mend relations with the US while embracing its enemies. Dawie believes that nothing prevents President Donald Trump from revising South Africa’s position or excluding industries in the short extension period till December 2026.
Political analyst Professor Piet Croucamp disagrees. He believes that Trump is using trade to punish South Africa, using tariffs as a type of sanction for what he is led to believe about the country, the alleged white genocide being the driving factor.
“There is nothing wrong with South Africa’s foreign relationships. The country’s relationship with Iran for example, is insignificant when compared to other countries,” Piet says.
South Africa’s relationship with the US worsened after hosting Iran in long-planned naval exercises off its coast recently.
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