Johannesburg – MISA, the Motor Industry Staff Association, has welcomed South Africa’s inclusion in the extension of AGOA (African Growth and Opportunity Act).
AGOA, a key cornerstone of United States–Africa trade for the past 25 years, was suspended on the date it was set to expire on 30 September 2026.
The suspension of AGOA severely impacted South Africa’s vehicle and part exports in 2025, plummeting by 55% to 80% year-on-year, falling from R26.5 billion (Jan-July 2024) to R9.8 billion in 2025.
Under AGOA, more than 1 800 South African products and goods were exported to the U.S. duty-free.
Commenting on the matter on Wednesday, 4 February 2026, MISA said the extension will benefit the country’s vehicle and automotive part exports.
Martle Keyter, MISA’s Chief Executive Officer: Operations, lamented that from August 2025, South Africa was subjected to a 30% blanket tariff, which further increased the cost for U.S. businesses importing vehicles from South Africa.
This put South Africa at a significant disadvantage compared to other countries exporting vehicles to the U.S., which only pay 25%.
Dawie Roodt, Founder and Chief Economist of the Efficient Group, told MISA that it is in the best interest of the South African automotive industry to be included in AGOA.
“This means that government should remain neutral on international issues where the United States is involved instead of taking an opposing position in the best interest of the economy,” advised Roodt.
In that regard, the South African government seemed to be pursuing a balancing act; trying to mend relations with the U.S. while embracing its enemies.
Roodt believes that nothing prevents U.S. President Donald Trump from revising South Africa’s position or excluding industries in the short-term AGOA extension period till December 2026.
However, political analyst Professor Piet Croucamp stated that Trump was using trade to punish South Africa, using tariffs as a type of sanction for what he believes about the country, the alleged white genocide being the driving factor.
“There is nothing wrong with South Africa’s foreign relationships. The country’s relationship with Iran, for example, is insignificant when compared to other countries,” said Croukamp.
The soon-to-be octogenarian, Trump, has also strongly criticised South Africa’s foreign policy, and especially its decision to take Israel to the United Nations’ top court and accuse it of genocide against Palestinians in Gaza.
The U.S. President, who turns 80 on 14 June 2026, cites that case against a U.S. ally as an example of what he referred to as a larger anti-American position from South Africa.
South Africa’s relationship with the U.S. appears to have worsened after hosting Iran in long-planned naval exercises off its coast.
Some analysts suggest that Washington’s one-year extension of its preferential trade programme for Africa will deliver only a short-lived reprieve for the continent.
