Lesotho Faces Economic Strain as Trump Imposes Highest Tariff in History on Goods from the Tiny Kingdom - PRESS AI WORLD
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Lesotho Faces Economic Strain as Trump Imposes Highest Tariff in History on Goods from the Tiny Kingdom

Credited from: CBSNEWS

Lesotho, a small landlocked nation in southern Africa, is poised to suffer economically following the U.S. government's imposition of a staggering 50% tariff on its exports. This decision, announced by President Trump, places Lesotho amongst the hardest-hit nations, with experts warning that the tariff could fundamentally destabilize its economy, which is heavily reliant on the textile sector.

The kingdom, known for producing jeans for international brands like Levi's and Wrangler, currently exports nearly 75% of its textiles to the U.S. and provides employment for approximately 12,000 workers in its factories. However, the new tariffs are likely to deter American consumers due to increased costs, which could lead to factory closures and significant job losses.

Lesotho's Trade Minister, Mokhethi Shelile, expressed the urgency of the situation, stating, "We need to urgently travel to the U.S. to engage with its executives and plead our case." The government plans to send a high-level delegation to Washington in hopes of negotiating new trade terms. Shelile emphasized the need to diversify Lesotho's trading partnerships amid fears of over-reliance on the U.S. market.

Lesotho's economic challenges are compounded by Trump's claims that the nation imposes unaffordable tariffs of up to 99% on U.S. goods, a figure disputed by government officials who question the methodology behind the U.S. trade calculations. In 2024, bilateral trade between Lesotho and the U.S. stood at $240.1 million.

The imposition of such tariffs on Lesotho reflects wider discontent within the African continent, particularly as many nations struggle with persistent poverty and unemployment. Countries like Madagascar are also feeling the impact, facing tariffs of 47% on their exports. Economic analysts warn that the Trump administration's protectionist approach may undermine progress made under the African Growth and Opportunity Act (AGOA).

As the situation unfolds, industry leaders and government authorities in Lesotho remain hopeful that new market strategies and alternative trade partnerships can mitigate the damage inflicted by these tariffs, while experts speculate about the future viability of AGOA amid rising tensions in U.S.-Africa trade relations.

For more on this developing story, click here.

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