Trump's Shock Tariff on Lesotho: A Trade Tsunami for the Tiny Kingdom?

A trade storm is brewing as former US President Donald Trump has imposed a staggering 50% tariff on imports from Lesotho, a small, landlocked nation in Southern Africa. This move, the highest tariff rate levied globally, has triggered widespread concern about the economic stability of Lesotho, a country heavily reliant on its textile exports.

The tariff was enacted following claims by Trump that Lesotho imposes a 99% tariff on US goods. However, Lesotho's government has vehemently disputed this figure. Lesotho's Trade Minister, Mokhethi Shelile, expressed his concern about the impact on the country's textile sector, which employs around 12,000 people.

In 2024, Lesotho's exports to the United States totaled $240.1 million, with textiles accounting for 75%. Key exports include products for brands like Levi's and Wrangler, along with diamonds, water, and wool. In contrast, Lesotho imported less than $3 million worth of goods from the US.

Lesotho's economy is already struggling, with nearly half of its 2.3 million population living below the poverty line and one in four unemployed. The average citizen earns less than $5 a day. With a national output of around $2 billion annually and a per capita income of just $975, the country struggles to achieve economic stability. The new tariffs threaten to exacerbate these challenges.

In response, Minister Shelile announced that Lesotho would seek new markets, particularly within the African Continental Free Trade Area (AfCFTA), to boost exports. Lesotho is also planning to send a delegation to the US to negotiate a more favorable trade arrangement. “We are concerned about the possible closure of textile factories,” Shelile said, stressing the importance of resolving the issue swiftly to protect jobs and the economy.

The situation remains tense as Lesotho braces for the potential economic fallout of this unprecedented tariff.