Bless the Trade Down in Africa: AGOA Short-Term Reauthorization

On Feb. 3, the House passed and President Trump signed H.R.7148, which included a provision that reauthorized the African Growth and Opportunity Act (AGOA) until December 31, 2026. H.R.7148 also provides funding for the five remaining fiscal year (FY) 2026 appropriations bills, and a two-week continuing resolution for the Department of Homeland Security. The extension applies to general duty-free treatment for eligible sub-Saharan African countries, AGOA’s regional apparel program and its third-country fabric program. AGOA’s regional apparel program’s duration is also extended from 21 years to 23 succeeding years.

The reauthorization also allows for AGOA duty-free treatment on products from AGOA eligible countries that entered the United States between Sept. 30, 2025, and Feb. 2, 2026. To receive the retroactive benefit, importers must file a request with U.S. Customs and Border Protection within 180 days of Feb. 3 and provide information to locate or reconstruct the entry. The United States must refund any owed amounts to the importers within 90 days, without interest.

Congress extended AGOA’s customs user fees from Sept. 30, 2031, to Dec. 31, 2031, and merchandise processing fees under the U.S.-Korea FTA Implementation Act to Dec. 31, 2031.

Impact on Trade in Africa

AGOA is the key driver of the U.S. trade relationship with sub-Saharan African countries, and it created significant economic development across the African continent since AGOA’s enactment in 2000. The Office of the U.S. Trade Representative (USTR) estimates that in 2024, the U.S. goods and services trade totaled roughly $104.9 billion and sub-Saharan Africa totaled around $48.8 billion, which is largely supported by the benefits provided under AGOA.

AGOA reauthorization resumes duty-free access to over 1,800 products, but it does not override the reciprocal tariffs imposed by the Trump administration on imports from African countries. President Trump imposed the reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) to resolve trade deficits and for both economic and national security concerns. As a result, the reciprocal tariffs override the benefits provided under AGOA.

The loss of AGOA after Sept. 30, 2025, caused some African countries to experience a “double impact” of the Trump administration’s reciprocal tariffs and the loss of AGOA’s duty-free access. AGOA’s renewal should ease some of the burden from “double impact,” but some countries will still be subject to either the 10% universal tariff, the product-specific or country-specific tariffs imposed under President Trump’s reciprocal framework.

Many countries across the African continent are working with the Trump administration to negotiate on a new trade framework to ease the impact of the reciprocal framework. The U.S. Supreme Court heard oral arguments in November 2025 to consider the legality of President Trump’s use of IEEPA to impose tariffs. The Supreme Court is expected to release a decision as soon as Feb. 20, or sometime later this year. Depending on the Supreme Court’s ruling, the reciprocal tariff framework could be removed and African countries will see the resumption of AGOA trade benefits.

Next Steps

The one-year extension of AGOA is aligned with the Trump administration’s position on the preferential trade program, but many African exporters expressed interest in a long-term reauthorization, over a short-term. Industry in Africa is unlikely to reinvest in the jobs, facilities and programs vital for their involvement in AGOA. The short-term reauthorization will not provide enough industry support to fully resume operations seen under the AGOA trade benefits.

Before the enactment of H.R.7148, the House of Representatives passed the AGOA Extension Act (H.R.6500) by a vote of 340-54 on Jan. 12. House Ways and Means Committee Chairman Jason Smith (R-MO) and House Ways and Means Subcommittee on Trade Chairman Adrian Smith’s (R-NE) AGOA Extension Act shares many similarities with the provision in H.R.7148, but the AGOA Extension Act provides a three-year short-term extension instead of a one-year extension.

Congress and the Trump administration both expressed interest to work together on a long-term AGOA reauthorization, which will include multiple reforms designed to improve the trade program. During the House Ways and Means Committee markup of the AGOA Extension Act, members expressed an interest in revising the program to include benefits for new sectors like the critical minerals industry; reevaluate the eligibility criteria, with the potential to remove South Africa from its beneficiary status or expand the program to include countries party to the African Continental Free Trade Area (AfCFTA); and find opportunities to help African countries better utilize and implement AGOA benefits.

U.S. Trade Representative Jameison Greer said that the Trump administration is willing to work with Congress “to modernize the program to align with President Trump’s America First trade policy,” and other representatives from the Office of USTR expressed interest in demanding “more from our trading partners.”

The United States is incredibly focused on securing critical resources and supply chains away from foreign adversaries, and it sees the role allies in Africa can play toward achieving these goals. We believe that discussions for a long-term reauthorization of AGOA and trade negotiations between the Trump administration and African countries will provide vital opportunities for growth in both the United States and Africa.

Brownstein’s International, Trade, and Critical Minerals teams have extensive experience connecting industry leaders, foreign governments and other key stakeholders to U.S. government officials. Our team has engaged on issues related to AGOA and its reauthorization, with experience supported by former Chairman of the House Foreign Affairs Committee and original co-author of AGOA, Ed Royce. We strive to support our clients with establishing strong connections with key diplomatic and government officials to leverage our clients’ needs. If you would like to engage on issues related to a long-term AGOA reauthorization or general U.S.-Africa relations, please contact one of the authors of this alert.

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