LESOTHO is in emergency mode as it rushes to send a high-level delegation to Washington, DC, in a last-ditch effort to reverse US-imposed tariffs that could devastate its fragile economy. The country’s trade minister warned on Friday that new 50% reciprocal tariffs—announced this week by US President Donald Trump—could wipe out nearly half of Lesotho’s total exports.
Speaking in parliament, Trade Minister Mokhethi Shelile described the decision from the US as ‘shocking’, particularly because America has long served as one of Lesotho’s most vital trade partners. According to Reuters, 45 percent of the kingdom’s exports—largely textile goods destined for US brands like Levi’s—are at risk.
Exports under threat
Lesotho’s total exports to the United States in 2024 were valued at $237 million, a figure representing more than 10 percent of the country’s gross domestic product. With such high dependence on one trade partner, the newly announced tariffs pose an existential threat.
‘We’ve engaged the US Embassy to clarify how and why Lesotho ended up on the list of economies facing such extreme reciprocal tariffs,’ Shelile told lawmakers.
The trade blow is especially damaging considering Lesotho’s economic vulnerability. The landlocked kingdom, entirely surrounded by South Africa, has a population of just over two million and a GDP per capita of only $916 as of 2023, according to the World Bank.
Trump’s tariff earthquake
On Wednesday, President Trump unleashed a sweeping set of tariffs on America’s global trading partners, upending decades of rules-based trade policy. His administration has framed the move as a bid to level the playing field and bolster domestic industry. Critics, however, argue that these policies disproportionately hurt smaller, poorer economies.
Lesotho drew particular attention as the highest-profile African nation on the tariff list, prompting fears that it may suffer irreparable economic damage unless quick action is taken.
‘Lesotho is putting together a top-level team to travel to the United States and defend our market access,’ Shelile said. ‘This is not just about trade—it’s about survival.’
Eyeing new markets
While the immediate goal is to salvage access to the American market, Lesotho is also exploring ways to diversify its export destinations. The trade minister indicated the country would now increase efforts to build ties with the European Union and the African Continental Free Trade Area (AfCFTA), the African Union’s ambitious intra-continental trading bloc.
‘We must not rely on one partner. This crisis has shown the need to look beyond traditional markets and find new partners across the continent and in Europe,’ Shelile told parliament.
But any such pivot will take time—and Lesotho’s manufacturing sector, particularly its textiles industry, can’t afford to wait. Thousands of factory jobs depend on the export deals now under threat, many of them employing women in communities already struggling with poverty and limited opportunity.
A fragile economy on the brink
The situation underscores the challenges faced by smaller economies in a global system where trade policy can change overnight. Lesotho has long benefited from access to US markets under favourable trade agreements. That advantage now hangs in the balance.
As workers at Maseru’s apparel factories stitch garments for major global brands, their future hangs by a thread. Reuters reports that uncertainty has already begun to affect production planning, with factory owners unsure whether their orders will remain viable under the new tariff regime.
Shelile remains hopeful that diplomacy can win the day, but stressed that Lesotho must be prepared for a harder road ahead. ‘We are not just negotiating trade—we are fighting for the livelihoods of our people,’ he said.
