The trade relationship between South Africa and the United States remains economically important, but it is operating in a far more complex environment than it did only a few years ago.

There are encouraging signs. South Africa and the United States continue to engage on trade and investment, South Africa remains an eligible beneficiary under the African Growth and Opportunity Act (AGOA), and Congress has now extended AGOA through 31 December 2028.

For SACCUSA, the extension is welcome. It provides businesses with additional certainty and preserves one of the most important foundations of the commercial relationship between the United States, South Africa and the wider African continent.

However, an extension of AGOA does not in itself resolve the challenges facing bilateral trade.

Trade Negotiations Remain Critical

South Africa has been engaging the United States on a broader trade arrangement following the introduction of additional U.S. tariffs on South African products. The South African government has submitted revised proposals addressing a number of concerns raised by Washington, including market access and barriers affecting U.S. agricultural and other exports.

These negotiations are important because the United States is looking increasingly at reciprocity — not simply what access African countries receive to the U.S. market, but what opportunities American companies, farmers and investors receive in return.

U.S. Trade Representative Jamieson Greer has made clear that Washington wants a modernised AGOA to deliver greater market access for U.S. businesses, farmers and ranchers and to align more closely with U.S. economic and strategic priorities.

This means the future trade conversation is likely to move beyond traditional development assistance and preferential access toward a more commercially reciprocal relationship.

For South Africa, this presents both a challenge and an opportunity.

SACCUSA’s Concern: AGOA Must Remain Meaningful

SACCUSA’s principal concern is not simply whether AGOA continues to exist, but whether South African companies can continue to derive meaningful commercial benefit from it.

AGOA provides preferential access to the American market for qualifying products, but additional tariffs imposed under separate U.S. trade measures can substantially reduce or even eliminate that advantage.

The automotive industry provides one of the clearest examples. Industry representatives have welcomed the extension of AGOA through 2028, but have warned that separate U.S. duties on vehicles and automotive components can effectively neutralise the preferential access traditionally provided under AGOA.
The same principle matters for agriculture, manufacturing, speciality products and the growing number of smaller South African exporters trying to establish themselves in America.

Preferential access has limited value if additional tariffs ultimately make a South African product uncompetitive when it reaches the U.S. customer.

Certainty Matters to Business

A second concern is predictability.

Companies make investment decisions over several years, not several months. Exporters invest in production capacity, regulatory approvals, American distribution networks, warehousing, employees and marketing long before the first product reaches a customer.

Repeated uncertainty around tariffs, AGOA eligibility and the future rules governing market access makes those decisions more difficult.
There is already evidence of this pressure. Western Cape exports to the United States reportedly declined by 16.2% in 2025, with agriculture and manufacturing among the sectors exposed to changing trade conditions.

The extension of AGOA to 2028 therefore provides welcome breathing room, but the longer-term objective should be a more durable U.S.–Africa trade framework that gives businesses sufficient certainty to invest.

Keeping Trade Separate From Political Differences

SACCUSA also believes it is increasingly important that the strong commercial relationship between South Africa and the United States is not unnecessarily undermined by political or diplomatic disagreements.

The two governments will not always agree on foreign policy or domestic policy. Recent months have demonstrated that there remain significant areas of disagreement between Washington and Pretoria.

However, businesses, employees, investors and consumers in both countries benefit from maintaining open commercial channels.

South Africa offers the United States sophisticated financial markets, advanced manufacturing capability, agricultural production, critical minerals, professional services and a gateway into wider African markets.

The United States provides South African companies with access to the world’s largest consumer economy, technology, investment capital and some of the world’s most important corporate partners.

Those economic interests should provide a strong incentive for both governments to continue negotiating.

Critical Minerals Could Become an Important Bridge

One area presenting considerable opportunity is critical minerals and value-added mineral processing.

During engagements in the United States in September, South African Trade, Industry and Competition Minister Parks Tau positioned South Africa as a potential strategic partner for U.S. supply-chain security, highlighting opportunities in platinum-group metals, rare earths, titanium, zirconium, green steel and downstream processing.

This is significant.

The future relationship does not need to be defined only by disagreements over tariffs. South Africa has resources and industrial capabilities that are increasingly strategically important to the United States.

Building investment partnerships around minerals, energy, advanced manufacturing and processing could become an important new pillar of bilateral economic relations.

The SACCUSA Position

SACCUSA remains committed to a simple principle: trade and investment between South Africa and the United States should continue to grow regardless of the political cycle.

Our priorities are therefore clear:

Preserve meaningful AGOA access. The extension through 2028 is important, but South Africa must remain eligible and the benefits should not be eroded by overlapping tariffs.

Conclude a practical trade understanding. Both governments should work toward an arrangement that addresses legitimate U.S. market-access concerns while protecting established South African export industries.

Provide long-term certainty. Businesses need predictable rules to make investments, establish supply chains and create jobs.

Increase two-way trade. The relationship cannot be viewed only through the lens of South African exports. South Africa should also identify commercially viable opportunities for increased U.S. exports and investment.

Keep business engaged in the negotiations. Governments negotiate trade agreements, but businesses ultimately conduct the trade. Chambers, industry associations, exporters and investors must therefore remain part of the conversation.

The United States and South Africa have built a substantial commercial relationship over many decades. The present challenges are significant, but they are manageable if both countries approach the relationship pragmatically.

For SACCUSA, the objective must be to move the conversation from uncertainty to predictability, from tariffs to trade, and from political differences to economic opportunity.

AGOA remains an essential part of that relationship. Protecting it — and ensuring that it continues to deliver real commercial value — should remain a priority for South African businesses in the United States and for everyone committed to strengthening U.S.–South Africa economic relations.