Lesotho has been subjected to the highest tariff rates under the latest trade policy announced by the United States. The 50% import tax, effective immediately, is part of a broader strategy by the Trump administration to address trade deficits. Lesotho, a small southern African nation, primarily exports textiles, including jeans, and diamonds to the US.
The tariff decision was outlined in a list released by President Donald Trump on Wednesday, targeting imports from various countries, including 20 African nations. The new tariffs are described as “reciprocal tariffs” aimed at reducing the US trade deficit by imposing higher rates on imports from countries with significant trade imbalances. In Lesotho’s case, the US imports far more from the country than it exports to it, with imports valued at $237.3 million compared to just $2.8 million in exports in 2024.
The announcement has raised concerns in Lesotho, particularly in its textile industry. Trade Minister Mokhethi Shelile indicated that the government would send a delegation to Washington to appeal the decision. He expressed particular concern about the potential for factory closures and job losses.
Lesotho has benefited in recent years from the African Growth and Opportunity Act (AGOA), which allowed eligible African countries to export certain goods, including textiles, to the US without facing tariffs. However, the new tariffs threaten to undermine these gains. The country’s garment factories, which produce jeans for major US brands such as Levi’s and Wrangler, contribute significantly to its economy. Nearly three-quarters of Lesotho’s exports to the US are textiles, and the trade accounts for more than 10% of the country’s GDP.
Teboho Kobeli, founder of Lesotho-based Afri-Expo Textiles, expressed the difficulties his company faces due to the tariffs, noting that the US market remains crucial despite the challenges. Other experts, such as international trade lawyer Colette van der Ven, have criticized the decision, calling it counterproductive, as it penalizes Lesotho for the success it has achieved under AGOA.
Other African countries affected by similar tariff hikes include Madagascar, Mauritius, Botswana, and South Africa, among others. For these nations, the US trade relationship is significant, and the new tariffs could have substantial economic implications.
In response to the changes, South Africa’s trade minister, Parks Tau, called the tariffs “punitive” and noted that they could hinder trade and shared prosperity between the US and African countries. He also emphasized the importance of diversifying trade within the African continent.
The Trump administration has stated that these tariffs are part of an effort to address perceived unfair trade practices and reduce the trade deficit with foreign countries. Critics argue, however, that the tariffs could lead to economic disruptions and may prompt African countries to seek alternative trade partners, particularly within the Global South.
These tariffs come at a time when many African countries are already dealing with the effects of cuts to US foreign aid, further complicating economic relations between the US and the region.
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