US President Donald Trump has notified Congress of his intention to remove South Africa and Rwanda from a preferential trade programme, from 1 January 2027.
The African Growth and Opportunity Act (Agoa) allows eligible African countries to export thousands of products to the US duty-free.
US Trade Representative Jamieson Greer said in a statement that an annual review had found that both countries were engaging in practices inconsistent with the programme's eligibility requirements.
He added that the Trump administration had additionally notified the two countries of the decision.
The Trump administration cited barriers to US trade and investment, as well as concerns over national security and foreign policy interests in the region.
In Rwanda's case, Washington also raised concerns about human rights, political pluralism, the rule of law and workers' rights.
The move comes barely a week after Rwanda's defence ministry was hit with sanctions by US Treasury for its alleged role in the armed rebellion in eastern DR Congo.
The US Treasury said Rwanda's defence ministry directed thousands of troops to fight alongside M23 rebels in eastern DR Congo, providing weapons, equipment, logistics and training.
For South Africa, the US additionally pointed to corruption.
"The Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria," Greer said.
The announcement comes amid strained relations between Washington and both countries, with the proposed termination threatening their access to preferential trade arrangements with the US.
Last year, Trump accused South Africa of white genocide in a meeting with President Cyril Ramaphosa at the White House and launched a US refugee pathway for Afrikaners.
US Ambassador to South Africa Leo Brent Bozell III said it was regrettable that South African policies led to its termination from Agoa.
"This was a predictable and preventable outcome resulting from the rejection by South Africa's government of real concerns raised by the US," he wrote on X.
