Losing AGOA is regrettable, but our motor industry cannot depend on one market

3 November 2026

For immediate release

MISA, the Motor Industry Staff Association, regrets the United States' decision to remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) with effect from 1 January 2027. While the decision is significant and disappointing, it does not amount to a trade ban. South African vehicles will continue to be sold in the American market.

Without AGOA, South African goods entering the United States will no longer enjoy duty-free access and will instead be subject to standard US tariffs. According to Wandile Sihlobo, President Ramaphosa's envoy on agriculture and land, this will add an estimated tariff of 3.4%, meaning products that currently attract duties of 12.5% could face tariffs of up to 15.9%.

For the motor industry, however, the most severe blow was dealt much earlier. In August, NAAMSA pointed out that the 25% Section 232 tariff on vehicles and automotive components, imposed in 2025, had effectively erased the benefits of AGOA. As a result, South African vehicle exports to the United States plunged by 83.2%, from 24 682 units in 2024 to just 4 136 units in 2025. The automotive sector remains a cornerstone of the economy, contributing 23.8% of South Africa's manufacturing output in 2025. Trade, Industry and Competition Minister Parks Tau has indicated that South Africa has 60 days to motivate its case before the AGOA removal takes effect. Notably, only 10% of South Africa's exports to the US entered under AGOA in 2025.

"Our members have lived with the 25% tariff since April last year. Losing AGOA does not change that reality, which is why we continue to call for an automotive trade solution," says Martlé Keyter, Chief Executive Officer: Operations at MISA. "Government must make full use of the 60-day notice period because the possibility of reinstatement remains. At the same time, the future of workers cannot depend on a single export market. Europe remains our largest export destination, while Africa presents our greatest growth opportunity. Trade with China and our BRICS partners must also be fair and balanced, ensuring that new trade agreements support jobs in South African factories rather than simply opening the country to increased imports."

Economist Duma Gqubule has similarly urged South Africa to prioritise expanding trade within the continent. "The hysteria around the loss of AGOA must stop. We must consider alternative markets. Our focus should be to develop a thriving regional economy by focusing on African trade."

MISA therefore calls on government to use the notice period to pursue South Africa's reinstatement to AGOA while simultaneously negotiating a sector-specific arrangement on the Section 232 tariff. Businesses and workers affected by the decision must receive the support government has promised, while South Africa accelerates efforts to grow vehicle exports into Africa and diversify access to other international markets.

Issued by Sonja Carstens, Manager of MISA’s Media & Communication Department, on behalf of the Union.

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