South African workers in the automotive, agricultural and manufacturing sectors could face an uncertain future after the United States announced plans to withdraw the country’s preferential trade benefits, threatening businesses that rely on access to the American market.

The US government has given South Africa 60 days’ notice of its intention to remove the country from the African Growth and Opportunity Act (AGOA), with the withdrawal expected to take effect on January 1, 2027.

The decision has raised concerns about the future of South African exports, particularly vehicles, agricultural produce and manufactured goods, with the government acknowledging that workers, businesses and communities linked to industries benefiting from the agreement could be affected.

AGOA, introduced in 2000, allows eligible African countries to export certain goods to the US without paying import duties, making their products more competitive in one of the world’s largest consumer markets.

For South Africa, losing these benefits could make some exports more expensive for American buyers, potentially affecting demand and putting pressure on companies that depend on the trade relationship.

The Department of Trade, Industry and Competition (the dtic) said government was working with affected industries to assess the implications of the US decision and determine what support could be provided.

It said the impact would differ across sectors and that assistance would be considered on a company-by-company basis.

Government also plans to engage social partners to strengthen support for productive industries, protect jobs and help businesses find alternative export markets.

Trade, Industry and Competition Minister Parks Tau said the decision did not define the broader relationship between South Africa and the US.

He said finding a solution would depend on both countries being willing to engage constructively.

“At the same time, government will support affected sectors, protect South Africa’s national interests and continue pursuing trade, investment and shared economic opportunities with the United States,” Tau said.

Government said it had made efforts to address concerns raised by Washington during negotiations that began in 2025.

According to the department, South Africa had offered additional concessions beyond those agreed to in 2015 through the appropriate channels.

However, it said the US had subsequently raised new issues that had not formed part of the earlier negotiations.

Despite the looming withdrawal, the government stressed that AGOA was not the foundation of the entire trade relationship between the two countries.

In 2025, South African exports to the US under AGOA were worth approximately US$1.7 billion, down from US$4 billion in 2024.

AGOA-related exports accounted for about 10% of South Africa’s exports to the US in 2025, compared with 28% the previous year, and represented approximately 1% of the country’s total exports worldwide.

The department said about 89% of South African exports to the US in 2025 entered under ordinary World Trade Organisation trade terms rather than AGOA preferences.

Bilateral trade between the two countries reached US$28.8 billion in 2025, while more than 600 American companies operating in South Africa support approximately 134,600 jobs.

South Africa also supplies 12 of the 50 minerals regarded as critical by the US and provides about 70% of the isotopes used by the country, including in cancer treatment.

The government warned that losing AGOA benefits could also disrupt existing business relationships and investments between the two countries.

It said South African manufacturers in industries such as vehicle production and boat building also rely on American inputs to manufacture goods for export.

The Democratic Alliance (DA), however, blamed the government’s handling of diplomatic relations with Washington for the looming exclusion.

DA spokesperson on International Relations and Cooperation Ryan Smith said South Africa’s removal from AGOA was avoidable and accused International Relations Minister Ronald Lamola of failing to protect the country’s economic interests.

Smith said the decision was a serious blow to agriculture, agro-processing, automotive manufacturing and mining, warning that workers employed in industries dependent on access to the American market could bear the consequences.

He accused the ANC government of allowing ideological differences and its approach to international relations to undermine trade negotiations with one of South Africa’s major trading partners.

The DA also argued that the government had failed to respond adequately to concerns raised by the administration of US President Donald Trump.

Smith said a DA-led national government would prioritise restoring preferential access to the American market and expanding South Africa’s international trade opportunities.

Meanwhile, the government said it would accelerate efforts to diversify export markets rather than rely heavily on one trading partner.

Potential opportunities include the African Continental Free Trade Area, the Southern African Development Community, India, China, the European Union, the United Kingdom and markets in South America and Southeast Asia.

The department also pointed to new export opportunities for South African citrus, avocados, grapes and apples.

Government maintained that South Africa remained committed to a mutually beneficial relationship with the US while protecting its constitutional obligations and national interests.

For businesses and workers whose livelihoods are connected to exports, however, the coming months will be critical as the government attempts to prevent the trade dispute from turning into a deeper economic setback.