While agriculture stakeholders such as Citrus Growers’ Association of Southern Africa (CGA) have welcomed the extension of African Growth and Opportunity Act (Agoa) to 2028, it falls short of the 15 years that South Africa was hoping for and trade certainty remains clouded by other tariff risks.
The US implemented a new 12.5% tariff on a wide range of South African imports on July 24 owing to “slave labour” concerns, which think tank Advancing American Freedom trade expert and international relations fellow Andrew Hale says is another one of US President Donald Trump’s suite of illegal tariffs being imposed on countries all around the world.
He affirms that Trump’s Liberation Day tariffs, forced labour tariffs and new tariffs against Canada are all illegal and did not follow due approval process, with the US having recorded massive losses in providing refunds as a result of tariffs being declared illegal by the courts.
“Countries are developing supply chains away from the US, including the EU, as they want more reliable trading partners and not to be at the mercy of these situations,” Hale notes.
Nonetheless, US lawmakers are worried that South Africa works too closely with countries such as Russia and China and have therefore initiated the US-South Africa Bilateral Relations Review Act as a proposed law that requires a full check of ties between the US and South Africa. The law may allow the US government to consider sanctions against certain leaders.
