South Africa faces loss of AGOA benefits as US Tariffs bite

SOUTH AFRICA – The last benefits of the American African Growth and Opportunity Act (AGOA) will disappear at the end of the month, leaving South Africa’s agricultural exports exposed to steep US import tariffs.

Industry leaders warn that the change will cut competitiveness and strain years of trade ties with American buyers.

Exports under pressure

Since 2000, AGOA gave sub-Saharan African countries tariff advantages, with South Africa using them the most. Fruit juice stood out as a major success.

Last year alone, South Africa exported $27 million (R469 million) worth of apple juice and $17 million (R295 million) worth of citrus juice to the US.

But the outlook has changed. On 5 August, US President Donald Trump introduced a new “reciprocal” tariff of 30% on South African goods. The tariff erased most of AGOA’s gains even before its expiry.

“AGOA lifted the general import tariffs for qualifying products, known as the most favoured nation (MFN) tariffs. America’s MFN tariffs are, on average, low, but there are exceptions,” said Eckart Naumann, independent economist and associate of the trade law centre, TRALAC, in remarks carried in a report by Carien Kruger of African Farming and Landbouweekblad.

For products such as lemon juice, the MFN tariff is almost R1.50 per litre. For shelled macadamia nuts, it is 5 cents per kilogram. Without AGOA, these costs now apply, on top of the 30% tariff.

Industry Concerns

Rudi Richards, CEO of the South African Fruit Juice Association (SAFJA), stressed the importance of the US market. “In 2024, our exports to America were worth more than R1 billion and comprised 14% of our total exports. This consisted of apple concentrate (almost 50%), citrus concentrate (lime, grapefruit and lemon) and ready-to-drink juices.”

He explained that 85% of these exports go to the US in concentrate form, where American distributors process them into ready-to-drink juices.

“Thanks to AGOA there was previously a 0% tariff on these products. The 30% tariff now significantly reduces the competitiveness of South Africa’s products. The most critical issue is therefore what competitors’ import tariffs are,” Richards said, in comments highlighted by Kruger’s reporting.

Naumann noted that South Africa exported US$24.62 million worth of apple juice to the US through July this year, more than Chile, Argentina, and Brazil. But exporters fear that advantage will fade.

Looking ahead

Richards warned that diversification will not be quick. “The relationships with American buyers and the resulting exports to America have been built up over many years. The same process will now be needed in new markets, and it will be more complicated because other competitors will also want to diversify.”

He added that South African authorities must support exporters by securing trade agreements with other markets. “A lower American demand for South Africa’s concentrates could lead to lower intake of farmers’ fruit or intake at lower prices. Given that fresh fruit exports are also subject to the 30% tariff, this is a serious dilemma for the entire value chain.”

Naumann gave a cautious note of optimism. “Although the general view is that AGOA will not be renewed before the end of September, it is still possible that it could happen later. Perhaps it will be in a different format and still offer a degree of benefits to African countries, even if it is no longer fully tariff-free market access as before,” he said in the interview with Kruger.

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