In a significant shift that could reshape trade relations with Africa, former U.S. President Donald Trump has announced broad new tariffs on imported goods—including products from African nations that currently benefit from the African Growth and Opportunity Act (AGOA).

Trade analysts warn that this move signals a strong likelihood that AGOA, a key U.S.-Africa trade initiative, may not be renewed beyond its current expiration date in September 2025.

What is AGOA?

AGOA, launched in 2000 under President Bill Clinton, was designed to strengthen economic ties between the U.S. and Sub-Saharan Africa. The program grants duty-free access to the U.S. market for thousands of products—including automobiles, textiles, minerals, metals, agricultural goods, and chemicals—exported by eligible African countries.

It has been renewed twice but is now under serious threat amid growing protectionist trade policies from the Trump camp.

Who Benefits?

Currently, about 35 African countries are eligible for AGOA, although eligibility depends on a country’s commitment to economic reform and human rights. Nations such as South Africa, Nigeria, Ghana, Kenya, Lesotho, Madagascar, and Ethiopia have used the initiative to drive industrial growth, create jobs, and boost exports, especially in textiles, clothing, and minerals like crude oil.

The United States, in turn, gains access to vital resources, new investment opportunities, and increased influence on the continent—often positioning AGOA as a soft-power counterbalance to China’s growing footprint in Africa.

However, countries seen as undermining U.S. national interests can be removed from the program.

What Are the Concerns?

Despite its successes, AGOA has faced criticism for being underutilized. Only half of the eligible nations have developed national strategies to take full advantage of the program, and the majority of exports come from just a handful of countries.

While industries like apparel and automotive manufacturing have flourished under AGOA, other sectors have lagged behind.

U.S. imports under AGOA peaked at $82 billion in 2008 but had declined to just $29.1 billion by 2024, raising questions about the program’s long-term effectiveness.

Many experts believe AGOA needs to be modernized to include emerging industries such as technology and digital services to remain relevant.

What Lies Ahead?

African nations have pushed for a 10-year extension of AGOA, but Trump’s trade approach suggests this may be unlikely. The recent wave of tariffs has increased fears that AGOA could be terminated before its 2025 expiration unless African nations can offer strong incentives to keep it alive.

Officials from South Africa and Madagascar have stated they are awaiting clarity on whether Trump’s new tariffs will apply to AGOA-covered exports.

Ultimately, the decision to extend AGOA lies with the U.S. Congress, followed by presidential approval. For now, the future of one of Africa’s most significant trade partnerships hangs in the balance.

Source: Reuters

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