Lesotho Worst Hit with US Tariffs: The Kingdom of Lesotho is reeling after the United States imposed a staggering 50-percent tariff on its imports, the highest among African nations. The new tariffs, part of President Donald Trump’s “reciprocal tariffs” policy, have triggered fears of factory closures and massive job losses in the small textile-dependent economy.
Lesotho Worst Hit with US Tariffs: Government Seeks Urgent Talks
Lesotho’s Trade Minister Mokhethi Shelile announced plans to send a government delegation to Washington to plead for relief. “We need to urgently travel to the US to engage with its executives and plead our case,” Shelile said. The textile industry, which employs approximately 12,000 workers, faces immediate risk as factories struggle to cope with the new tariff rates.
African Nations Struggle Under New Tariff Burdens
Lesotho is not alone in this economic storm. Other African nations hit with steep tariffs include:
- Madagascar – 47% tariffs
- Mauritius – 40% tariffs
- Botswana – 37% tariffs
- Equatorial Guinea – 30% tariffs
- South Africa – 30% tariffs
South African President Cyril Ramaphosa called the tariffs “a barrier to trade and shared prosperity,” emphasizing the need for a mutually beneficial trade agreement. Madagascar has also initiated diplomatic efforts to challenge the tariff hikes.
Lesotho Worst Hit with US Tariffs: Impact on AGOA and Future Trade
The tariffs have raised concerns about the future of the African Growth and Opportunity Act (AGOA), a deal that provides duty-free access to the US for eligible African nations. Economists fear that these new tariffs could mark the beginning of AGOA’s end.
“This must be the end of AGOA,” South African economist Dawie Roodt stated. “How can you have tariffs and AGOA? It doesn’t make sense.”
Lesotho’s King Letsie III previously warned that terminating AGOA could lead to 40,000 job losses in his country.
South Africa’s Automotive Industry Faces Heavy Blow
The US tariffs include a separate 25% charge on foreign-made cars, directly impacting South Africa’s automotive sector, which accounts for 22% of its exports to the US. This has prompted urgent calls for trade diversification within the Southern African Development Community (SADC).
Kenya Seeks Competitive Edge Amid Tariff Chaos
Kenya, hit with only a baseline 10% tariff, views the situation as both a challenge and an opportunity. “The new tariffs give Kenya a competitive edge compared to other textile-exporting nations hit with much higher rates,” a government spokesperson noted.
Lesotho Worst Hit with US Tariffs: Seeking Alternative Trade Partners
With the US imposing hefty trade barriers, African leaders are exploring alternative markets. South African Minister of Trade Parks Tau emphasized the importance of regional trade partnerships within Africa, stating, “Diversifying our trade is going to be important… enhancing our work on the African continent and collaborating.”
Lesotho’s economy stands at a crossroads as it navigates the devastating effects of the new US tariffs. With the future of AGOA uncertain, African nations must look inward and strengthen regional trade alliances to mitigate the economic blow. The road ahead will be challenging, but strategic trade diversification could provide a path forward.
