On Monday, November 2, the U.S. Trade Representative put out a short statement that matters a lot to anyone buying goods from Rwanda or South Africa. The President has told Congress and both governments that he intends to remove South Africa and Rwanda from AGOA, starting January 1, 2027.
If you’ve never had a reason to learn what AGOA is, or don’t know the nitty-gritty details, you’re not alone.
What AGOA is
AGOA stands for the African Growth and Opportunity Act. Congress passed it in May 2000 as part of the Trade and Development Act of 2000. The thinking was simple. If countries in sub-Saharan Africa could sell more to the U.S., their economies would grow, and over time they’d become better customers and partners for American businesses.
It works in one direction on purpose. Eligible countries can ship more than 1,800 kinds of products into the U.S. without paying duty, and they don’t have to give the U.S. the same deal back. What they do have to do is keep meeting the conditions Congress wrote into the law, like rule of law, fair access for U.S. goods, and respect for workers’ rights. USTR checks every country against those conditions once a year.
AGOA has been renewed several times over the years. It expired briefly on September 30, 2025. Congress brought it back in February 2026, and then in September extended it through the end of 2028.
Both countries have been in since day one
When President Clinton signed the proclamation that put AGOA into effect on October 2, 2000, Rwanda and South Africa were both on that first list of 34 countries.
South Africa has used it more than anyone. In 2025 it shipped about $1.7 billion worth of goods to the U.S. under AGOA, mostly cars and car parts, farm products, and wine.
Rwanda’s AGOA trade is much smaller, and it’s been through a version of this before. In 2018, the U.S. took away duty-free treatment on Rwandan clothing after Rwanda put steep tariffs on used clothing coming in from the U.S. Rwanda kept its other AGOA benefits. Those remaining benefits are what it’s losing now.
Why it’s happening
The decision came out of this year’s annual review. In its statement, USTR said both governments are doing things that don’t line up with AGOA’s rules. For South Africa, it pointed to barriers to U.S. trade and investment, corruption, and concerns about U.S. national security and foreign policy. Rwanda’s list was longer and also included rule of law, political pluralism, worker rights, and human rights.
What changes for importers of Rwandan and South African origin goods on January 1
Here’s the practical part. If a product from either country comes in duty-free today because of AGOA, starting January 1 it goes back to the regular duty rate for that product. That’s the general, or Most-Favored-Nation (MFN) rate in the tariff schedule. For some products that rate is zero, and you won’t notice a thing. For others, it’s a new cost on every shipment.
One thing to keep in mind: what we have right now is a notice of intent. The formal proclamation and CBP’s instructions will spell out exactly which entries are affected and what the impact on landed cost price calculations could be in the new year.
The duties AGOA never covered
This is where people sometimes get caught off guard. AGOA only ever removed the regular MFN duty published in the Harmonized Tariff Schedule. It never protected anyone from the other tariff programs that sit on top of it which have been added during the current Trump administration.
For South African goods, the big one right now is a 12.5% Section 301 tariff that started July 24, 2026. USTR put it on 60 countries it says aren’t doing enough to keep goods made with forced labor out of their markets. Some South African products are exempt, including platinum and other precious metals, some citrus and other fruit, juices, and nuts. Rwanda isn’t one of the 60 countries.
Then there’s Section 232. Cars and covered car parts have paid a 25% duty since spring 2025, AGOA or no AGOA. Steel, aluminum, and copper products pay 50%, many products made from those metals pay 25%, and since April 6, 2026, both rates are figured on the full value of the item. A product that’s paying Section 232 duty doesn’t also pay the Section 301 tariff. And if your product is under an antidumping or countervailing duty order, that applies no matter what happens with AGOA.
There is one piece of good news. For much of 2025, South African goods also carried a 30% IEEPA tariff. The Supreme Court threw those tariffs out in February. If you paid them, you may be able to get that money back.
A simple example
Say you bring in a South African product with a 4% regular duty rate, and it isn’t covered by Section 232 or one of the 301 exemptions. The numbers here are made up, just to show how it adds up.
| Duty | Today, under AGOA | Starting January 1, 2027 |
| Regular (MFN) rate | 0% | 4% |
| Section 301 tariff | 12.5% | 12.5% |
| Total | 12.5% | 16.5% |
Your real numbers will depend on how your product is classified, where it’s made, and what it’s worth.
Looking ahead
This doesn’t have to be permanent. Countries can be put back into AGOA once they meet the criteria again, and USTR says it’s working with its African partners to get there.
AGOA itself is also being rethought. In April, USTR asked for public comments on how to modernize the program, and it has said the next version should ask more of the countries that benefit. So the rules could keep shifting for other African countries, too. If you buy from suppliers anywhere in sub-Saharan Africa, now is a good time to know which of your products depend on AGOA for reduced duty eligibility.
A few quick questions we’re hearing
Is AGOA ending? No. The program remains in place through December 31, 2028. Only two member countries, Rwanda and South Africa, are being removed.
Does this change my Section 232 duties? No. Those apply with or without AGOA.
Do I still pay the Section 301 tariff on South African goods? Yes, unless your product is exempt or already paying Section 232 duty. That’s been true since July 24, and AGOA doesn’t change it.
If you’re not sure where you stand
Most of the importers we work with are small businesses. They don’t have a trade compliance department running these numbers, and a few points of duty can decide whether a product is still worth carrying. If you buy from Rwanda or South Africa and want to know what January 1 means for your landed costs, tell us your situation or email Kim Daniels at kdaniels@mlitinc.com. We’ll go through what you import and tell you what changes.