US renews trade subsidy pact with African countries

The United States on Tuesday renewed the African Growth and Opportunity Act (AGOA) through the end of the year, an agreement that allows many African countries to access the US market duty-free.

US Trade Representative Jamieson Greer said in a statement that President Donald Trump had signed into law a reauthorization of the trade preference program through December 31, 2026, with retroactive effect from September 30, 2025 -- the date it had expired.

"AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers, and ranchers," Greer said.

Trump has used trade and tariffs -- which he has called his "favorite word" -- as a carrot and a stick to reshape international relations, as he sees fit.

In a statement, Greer vowed to "work with Congress over the next year to modernize the program to align with" current US policy.

A cornerstone of US-Africa trade relations for 25 years, the AGOA has allowed the United States to buy billions of dollars of duty-free cars, clothes and other items from select African countries each year.

But the deal, which operates in 32 African nations, expired last September, affecting thousands of jobs and forcing exporters to absorb high tariff duties.

In 2024, $8.23 billion worth of goods were exported under the accord, half of which came from South Africa, mainly cars, precious metals and farm produce, and one fifth from Nigeria, mainly oil and other energy products, according to the United States International Trade Commission (USITC).

Smaller countries were hard hit, too. Lesotho's textiles sector, the country's biggest employer, was hard hit by AGOA's expiration, and hundreds of workers demonstrated in the capital Maseru in late October against cuts sparked by the new American customs tariffs.

Lesotho, which Trump described as a place "nobody has ever heard of," exported $150 million of goods under the accord in 2024.