If you grow, process or make goods in Africa and dream of selling to the United States, two pieces of U.S. trade news matter to you right now, and they pull in opposite directions.

The good news: the African Growth and Opportunity Act (AGOA), the U.S. scheme that lets eligible sub-Saharan African countries send thousands of products to America duty-free, has been extended to 31 December 2028. The less good news: a separate 12.5% U.S. tariff introduced in July applies to many goods from Nigeria, South Africa and five other African countries, and AGOA does not cancel it. This week, South Africa’s president warned his country to prepare for possibly losing AGOA altogether.

Here is what has changed, who it affects, and what to check before your next shipment to the U.S.

AGOA is extended to the end of 2028

AGOA was due to lapse at the end of 2026. On 2 September 2026, President Trump signed Public Law 119-103, a U.S. government funding law whose section 2008 moves AGOA’s end date to 31 December 2028. The extension also keeps the special apparel rules, including the “third-country fabric” provision, running to 2028. The U.S. Senate Finance Committee said the extension gives businesses “the certainty they need to continue investing”, while it works on longer-term reforms.

According to a Congressional Research Service report, about 6,000 product lines can enter the U.S. duty-free under AGOA, and 33 countries were eligible in 2026. U.S. imports claiming AGOA benefits were worth $5.0 billion in 2025. The biggest users were South Africa, the Democratic Republic of Congo, Nigeria ($409.9 million), Kenya and Madagascar.

The Nigerian-American Chamber of Commerce urged Nigerian firms to use the extra time to move beyond oil into farm produce, processed food, textiles and manufactured goods.

The catch: a 12.5% tariff that AGOA does not remove

In March 2026 the U.S. Trade Representative (USTR) opened investigations into 60 economies over whether they ban imports made with forced labour. In its June findings, USTR said Nigeria, South Africa, Angola, Egypt, Morocco, Algeria and Libya, among others, had no such ban.

The resulting Section 301 tariff of 12.5% took effect on 24 July 2026 for goods from those seven African countries. It is charged on top of normal U.S. duty. The CRS notes that AGOA’s duty-free treatment only covers normal U.S. tariffs. It does not apply to products hit by these presidential tariff actions.

Two points keep this in proportion:

  • Many big export lines are exempt. The tariff comes with product exemption lists. An analysis of the Nigerian annex by Juicyway found that crude oil, cocoa beans, urea, cashew nuts and natural gas are exempt. Sesame is exempt only as seed for sowing, so sesame sold for food or oil pays the 12.5%.
  • The tariff is about import laws, not your factory. USTR looked at whether each country bans forced-labour imports at its own border. It did not name any Nigerian product or company.

Some goods face other U.S. tariffs instead. Cars, steel, aluminium and some copper products are covered by separate “Section 232” duties, such as 25% on passenger vehicles, a major South African export.

Not every African exporter is in the same position

This is where it becomes an international story. Ghana, Kenya and Côte d’Ivoire were not among the 60 economies investigated. So an AGOA-eligible product from Accra or Nairobi can still enter the U.S. duty-free (unless a separate tariff such as Section 232 applies), while the same product from Lagos may pay 12.5% unless it is on an exemption list.

South Africa faces a bigger question. On 19 October, President Cyril Ramaphosa told South Africans to prepare for possible removal from AGOA, saying the impact would be “devastating”. The U.S. president reviews eligibility every year. Removing a country needs 60 days’ notice, so a removal that starts on 1 January must be announced by 2 November. South Africa’s carmakers are among those most exposed.

For garment makers, the U.S. has already opened the 2027 AGOA apparel quota, covering 1 October 2026 to 30 September 2027.

How AGOA duty-free entry actually works

Duty-free entry is not automatic just because your country is on the list. Key conditions in the U.S. tariff schedule include:

  • The product must be on the AGOA eligible list for its U.S. tariff code (HTS code).
  • At least 35% of its value must come from AGOA countries, through local materials and processing. Simply repacking or diluting imported goods does not count.
  • It must be shipped directly from the beneficiary country to the U.S.
  • Apparel has extra rules, including the textile visa system and the annual quota.

The Nigerian Export Promotion Council (NEPC) says U.S. Customs needs a certificate of origin and an AGOA stamp on the commercial invoice, issued in the country of origin. Note that the NEPC page still says AGOA runs to 2025, so confirm current details with the council directly.

What to do now: a checklist

  • Find your product’s U.S. HTS code. Your U.S. buyer, customs broker or freight forwarder can confirm it. Every decision below depends on it.
  • Check three things for that code: whether it is AGOA-eligible, whether it is on the Section 301 exemption list for your country, and whether a Section 232 duty applies.
  • Work out your landed price with and without the 12.5%. Agree in writing with your buyer who pays the duty, and choose your Incoterm with that in mind.
  • Document your origin. Keep records of local inputs and processing costs to prove the 35% rule, and get your certificate of origin and AGOA paperwork before the goods leave.
  • Add value at home where you can. Some exemptions depend on the product’s exact form (sesame for sowing versus food), so ask your broker how processing changes the duty.
  • Food and agro exporters: the U.S. Food and Drug Administration (FDA) has its own rules. NEPC is offering free voluntary certifications such as HACCP and FDA to food and agro exporters, with applications due by 30 October 2026.
  • Watch the 2 November date. Removal notices for 2027 would come by then. Also watch whether your government adopts a forced-labour import ban, which could change its tariff tier.
  • Don’t put all your eggs in one basket. Compare the U.S. with markets such as China, where Nigeria now has zero-tariff access, and Africa under the AfCFTA.

How Septmax can help

Septmax handles export freight, documentation and customs clearance by sea and air from Lagos, alongside imports and China-to-Nigeria door-to-door shipping. If you are preparing a first shipment to the U.S. or want help pricing a landed cost, call us on +234-707-476-0270 or email logistics@septmax.com. If you can dream it, we can handle it.