US to Strip Rwanda and South Africa of Duty-Free Trade Access The United States is moving to suspend Rwanda and South Africa from a preferential trade arrangement that has allowed duty-free access to the US market, according to reports this week. South Africa alone stands to lose an estimated $1.7bn in annual exports, including vehicles and agricultural products. The decision follows US sanctions imposed on Rwanda's defence ministry just over a week earlier.

Washington is preparing to suspend Rwanda and South Africa from a trade arrangement that has long granted both countries duty-free access to the US market, according to reports circulating this week. The move would strip away one of the few concessions African exporters currently enjoy when selling into the world's largest consumer market. South Africa's trade ministry estimates the change could affect close to $1.7bn in annual exports, spanning vehicles assembled for export and a range of agricultural goods such as citrus and wine. Manufacturers and farming cooperatives that have built supply chains around the preferential terms now face the prospect of paying standard tariffs, which could erode profit margins built up over more than two decades of duty-free trade.

Rwanda's smaller export base would also lose its preferential standing. The decision follows separate US sanctions placed on Rwanda's defence ministry just over a week earlier, adding to friction between Washington and several African governments over trade and security policy. Officials in Pretoria and Kigali have not yet detailed a formal response, though business groups in both countries are expected to lobby for a transition period before the change takes effect.