South Africa will support sectors affected by a US decision to suspend the country from Washington's flagship duty-free trade initiative for sub-Saharan African countries, its trade ministry says.

US Trade Representative Jamieson Greer announced the intention to suspend South Africa and Rwanda from the AGOA initiative earlier in the day, citing concerns about human rights, corruption and threats to US interests.

South Africa's trade ministry said in a statement on Monday that "AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States".

It added the US remained an important trade and investment partner but South Africa would continue to accelerate the diversification of its export markets.

‘New demands’

South Africa also said the United States was introducing new demands into trade talks, despite additional concessions offered by Pretoria after Washington announced plans to remove the country from its African duty-free trade programme.

Washington cited concerns over barriers to US trade and investment in South Africa, corruption, and threats to its national security and foreign policy interests.

But Trade Minister Parks Tau said Washington was raising issues that had not previously featured in negotiations.

"It is however unfortunate that the US is now raising new issues that have not been the basis for discussions as part of the negotiations process that commenced in 2025," said Trade Minister Parks Tau.

Uncertainty for exporters

The decision adds to uncertainty for exporters relying on preferential access to the US market under the African Growth and Opportunity Act (AGOA).

South Africa is the scheme's largest beneficiary but its eligibility has come under scrutiny as Washington steps up criticism of Pretoria, including false allegations of discrimination against white Afrikaners that South Africa rejects.

Tau acknowledged the impact on workers, exporters and businesses but said the government would support affected industries..

Only about 10 percent of South African exports to the US entered under the programme in 2025, down from 28 percent in 2024.

The programme provides duty-free access to the US market for South African vehicles, the country's second-largest export earner to the United States after precious metals, according to the South African Revenue Service.