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U.S.-Africa AGOA Trade Deal Faces Uncertainty as Tariff Talks Loom

Wednesday, 16 April 2025 12:32
U.S.-Africa AGOA Trade Deal Faces Uncertainty as Tariff Talks Loom

(Ecofin Agency) - • U.S. and African nations plan to hold talks on AGOA's future by July 2025.
• New U.S. tariffs could undermine Africa's duty-free access to American markets.
• African trade ministers will meet next week to seek a joint response.

Sub-Saharan African countries and the United States are expected to begin talks by July 2025 on the future of the African Growth and Opportunity Act (AGOA), a key trade program that has given duty-free access to U.S. markets since 2000. The announcement came from South Africa’s Trade Minister Parks Tau (pictured) on April 10.

Speaking on local radio, Tau said discussions would focus on whether AGOA can continue, especially after the Trump administration introduced a new wave of tariffs. These include a 10% base duty on all imports and even higher rates for certain countries in Africa and other regions. Tau warned that these measures could make it difficult to keep the program alive.

AGOA is set to expire in September, and African trade ministers will meet on April 15 in the Democratic Republic of Congo to explore a common strategy, the minister said.

On April 2, former President Donald Trump announced tariffs ranging from 10% to 50% on goods from 51 African countries. Although he later paused the global “reciprocal” tariff plan for 90 days, the 10% minimum duty remains in place. Meanwhile, tariffs on Chinese imports were raised to 125%.

Even that 10% base rate would effectively end AGOA, which has allowed eligible African nations to export nearly 1,800 products to the U.S. without paying customs duties.

Since AGOA was introduced, the U.S. has reviewed eligible countries each year, based on their commitment to free markets, rule of law, anti-poverty efforts, and democratic progress.

During President Joe Biden’s term, a bipartisan group of U.S. senators proposed extending AGOA through 2041. But uncertainty remains high, especially with protectionist trade rhetoric once again shaping policy in Washington.

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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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