AGOA extension welcomed but tariffs still weigh on South African fruit exports

SOUTH AFRICA – South African fruit exporters have welcomed the one year extension of the African Growth and Opportunities Act (AGOA), though industry groups say the move does little to ease the current trade strain caused by high US tariffs.

US President Donald Trump signed the extension into law, restoring preferential access for eligible African exports to the US market and easing fears of immediate trade disruption. For South Africa’s fruit sector, the decision offers breathing space but not a clear shift in trading terms.

The South African Table Grape Industry body, Sati, described the extension as a positive signal but stressed that tariffs imposed in 2025 remain in force.

“The extension is good news and a step in the right direction,” Sati said. “However, the 30 per cent tariff announced by President Trump in 2025 remains in place and AGOA will not override this.”

Sati explained that South African grapes shipped to the US now face a 30 per cent tariff with no additional duty, instead of a combined tariff and most favoured nation rate that would apply without AGOA.

“This means exporters pay a total tariff of 30 per cent, rather than a higher combined charge,” the organisation said.

Despite the added cost, Sati confirmed that its North American campaign will proceed as planned, including in store promotions across the US and Canada.

“We still see the USA as a key market and remain committed as a counter seasonal supplier to North America,” Sati added.

A long standing AGOA success story

South Africa’s fresh produce sector has ranked among the major beneficiaries of AGOA since the Act came into force in 2000. Over the past 26 years, citrus growers in the Western Cape and Northern Cape have built a strong export presence in the US market.

In more recent seasons, grape and stonefruit exporters have also increased shipments under AGOA terms, broadening South Africa’s fruit footprint in North America.

Last year, however, the US applied a 30 per cent tariff to South African goods, including fresh produce. Authorities later adjusted tariffs for some citrus types, mainly oranges, while excluding mandarins and other varieties.

Lobbying continues as policy review looms

Industry sources say exporters have continued working closely with US importers to keep fruit moving despite the tariffs. They believe the AGOA extension creates space for renewed engagement with US trade officials.

Sources added that the announcement opens further lobbying channels to argue for long term inclusion of South African fresh fruit under future AGOA arrangements.

The US government has framed the extension as a temporary measure designed to avoid trade disruption while officials review the programme. Trade sources in Washington say future AGOA changes will align with the America First policy, placing renewed scrutiny on renewals going forward.

Since its launch, AGOA has supported multiple African industries, but its future now faces tighter political review in the United States.

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