The Trump administration has imposed a 50% tariff on Lesotho, the highest levied on any country, dealing a severe blow to the small African nation’s economy. Lesotho, which relies heavily on exports, particularly textiles and diamonds, could see its key industries crippled by the tariff.
President Donald Trump, who recently dismissed Lesotho as a country “nobody has ever heard of,” announced the measure as part of a broader set of “reciprocal tariffs” aimed at reducing the US trade deficit. The formula used for calculating these tariffs disproportionately impacted smaller economies like Lesotho and Madagascar.
Also Read: Trump Imposes 25% Tariff on Car Imports
Lesotho’s exports to the US, worth $237 million in 2024, accounted for over 10% of its GDP. The move also effectively ends the African Growth and Opportunity Act (AGOA), which provided African nations with preferential access to US markets. Analysts warn that the decision could devastate Lesotho’s textile and apparel sector, its largest private employer.
Trade experts say the tariff hike follows the Trump administration’s decision to dismantle the US Agency for International Development (USAID), further undermining economic stability in African nations. Economic analyst Thabo Qhesi described the tariff as a death blow to Lesotho’s struggling economy.
Leave feedback about this
You must be logged in to post a comment.