For workers on factory floors in Cape Town, Atlantis, Malmesbury and Tulbagh, the news from Washington landed with a familiar dread. The labour federation Cosatu says those communities have already watched jobs disappear at local factories and companies, and it fears the United States’ decision to end South Africa’s duty-free access under the African Growth and Opportunity Act will deepen that damage.
“We have seen the devastation it threatens to these workers and farmers’ abilities to take care of their families,” said Cosatu national spokesperson Matthew Parks. With South Africa’s unemployment rate at a dangerously high 43.8% and economic growth weak, he argued the government must use the 60 days before the exit takes effect to negotiate “a favourable set of solutions to avert this potential blow to the economy and jobs”.
Those negotiations, Parks said, should be “based on facts, not fiction” and anchored on mutual respect, including recognition of South Africa as a constitutional democracy and a sovereign member of the international community. He called for continued Agoa membership talks and a reset of bilateral relations with the US, grounded in the interests of South Africa’s people and respect for its transformation journey. He also urged the Department of Trade, Industry and Competition, labour, National Treasury and agriculture to put in place an urgent package of support for at-risk workers, companies, industries and communities.
The Federation of Unions of South Africa echoed the alarm. “Workers must not bear the cost of international trade and diplomatic tensions,” said Fedusa general secretary Riefdah Ajam. Agoa-related exports were worth about $1.7 billion in 2025, roughly 1% of South Africa’s total global exports, but she warned the impact on particular industries and their employees should not be underestimated. Automotive manufacturing and retail, agricultural processing, food processing, textiles, clothing, footwear, leather, and associated logistics and supply chains could face increased pressure on production, investment and employment. Seasonal agricultural workers and those in export-dependent industries may see reduced working hours, income insecurity and potential retrenchments.
By contrast, on Tuesday economists told the Mail & Guardian the removal did not spell doom and gloom. The Office of the US Trade Representative announced that South Africa and Rwanda would be struck from the list of eligible nations, effective from 1 January 2027, because the Trump Administration found their governments engaged in practices “inconsistent with Agoa’s eligibility criteria”. Its concerns included barriers said to undermine American trade, investment and practices, threatening US national security and foreign policy interests in the region. Regarding South Africa specifically, the administration cited “barriers to US trade and investment; corruption, threats to US national security and foreign policy interests”.
Enacted in 2000, Agoa has made South Africa the programme’s largest beneficiary over 25 years, accounting for 54% of all Agoa-related exports to the US. Still, economist Duma Gqubule criticised the government for “spending much time visiting the US, trying to appease the Trump administration, when we should be putting much emphasis on trade with Africa”. “Trade with the US is very miniscule to worry about, instead of looking at other markets. We should be starting with Namibia in our backyard,” he said.
Donald MacKay agreed the benefit was always modest. On average, Agoa “gave us a 3.5% over the rest of the world, something not material”, he said. The worst pain had already come through Section 232 duties on cars, steel and aluminium. Cars, duty-free under Agoa while others paid 2.5%, were hit with 25% national security duties; losing Agoa now lifts that car tariff to 27.5%. Steel and aluminium, among the biggest Agoa exports, had already taken the heat. He predicted “some pain in the agricultural sector and individual businesses”, though not material risk to the sector overall, and called the US “the most unreliable trading partner”, saying South Africa must find other markets like everyone else “that has been victimised by the US”.
Wandile Sihlobo said the move was not outside expectations, noting that as far back as 2014 the debate centred on South Africa graduating from Agoa to a full bilateral agreement, complicated by the Southern African Customs Union. Exiting Agoa would add a Most Favoured Nation tariff of about 3.4% on top of existing duties, so products entering at 12.5% under the Liberation Day tariff would face 15.9%. Even so, he recalled 2025, when farming faced tariffs near 30% yet exports to the US totalled $504 million, down only 3%, with exporters using a 90-day pause to ship extra volume.
Sam Koma called the decision a serious economic setback with immediate implications for companies’ cash flow, as they begin paying duties on commodities, machinery and vehicles. “We hope that this policy decision will not result in job losses in the main,” he said, urging a proactive strategy from the Department of Trade, Industry and Competition, including leveraging the African Continental Free Trade Area, the BRICS bloc and the G20.
Meanwhile, for the workers and families in towns like Atlantis and Tulbagh, that hope now rests on what happens in the 60 days ahead.