In the heart of southern Africa, the nation of Lesotho has long been a key player in textile manufacturing for American giants such as Levi’s and Wrangler. For years, the country’s factories have produced numerous denim products found in American wardrobes. However, this economic landscape is poised to shift significantly due to a recent U.S. decision.
President Donald Trump recently imposed a hefty 50% tariff on imports from Lesotho, marking the highest tariff rate imposed on any country. In justifying the decision, Trump argued that Lesotho levied a 99% tariff on U.S. goods, a claim that left Lesotho’s officials puzzled and without any clarification of the origin of these figures. While Lesotho’s officials were unable to state what tariffs the nation places on U.S. imports, they highlighted the intangible impact this new U.S. decision may have.
Lesotho, landlocked and bordered by South Africa, recently celebrated two centuries since the Basotho nation’s founding and 58 years of independence from Britain. Known for its stunning mountain vistas, Lesotho attracts tourists from the continent and abroad, notably becoming a winter skiing hotspot. However, a key concern now looms over the kingdom’s economic stability as tariffs threaten its largest export market.
Apart from textiles, Lesotho benefits from tariff-free trade on exports to Botswana, Namibia, South Africa, and Swaziland, as a member of economic unions like the Southern African Customs Union. Its key exports extend beyond clothing to diamonds, water, energy, wool, and mohair. However, with Trump’s new tariffs, the affordability and competitiveness of Lesotho-made goods in the American market have been compromised. This could consequentially lead to higher prices for American consumers.
In 2024, the trade volume between the U.S. and Lesotho was reported to be $240.1 million, largely comprised of apparel alongside diamonds and other commodities. The World Bank categorizes Lesotho as a lower-middle-income nation, with almost half of its 2.3 million residents living in poverty, stressing the need for diversified economic prospects.
Nathanial Khumalo, Lesotho’s Trade Minister, expressed his country’s intention to seek alternative markets with the help of the Africa Continental Free Trade Area, thereby focusing on expanding within African territories. Alongside these efforts, Lesotho plans to dispatch a delegation to the U.S. aiming to negotiate new terms that might avert potential factory closures, which could jeopardize around 12,000 jobs within its textile sector.