Cliff Notes
- Lesotho faces the highest import tax from US tariffs, with a 50% levy on goods, significantly impacting its textile industry.
- The African Opportunity Act has previously boosted Lesotho’s exports to the US, but the country now seeks to reassess its tariff classification.
- Lesotho’s trade minister expresses hope for dialogue with US officials, referencing Trump‘s reputation as a negotiator despite challenges in raising awareness of the nation.
Lesotho faces the highest import tax from US tariffs, with a 50% levy on goods
Africa is home to some of the countries being hit hardest by Donald Trump’s tariffs, with South Africa (30%), Mauritius (40%) and Madagascar (47%) all targeted by big levies.
But it’s the landlocked, southern African kingdom of Lesotho which has it worse than the rest. Americans bringing in good from the tiny nation will have to pay an additional 50% import tax.
Lesotho exports some $237m worth of goods to the US and its textile industry in particular is heavily reliant on exports to America.
That’s largely down to a tax-free initiative set up during the Bill Clinton presidency that helps countries trade their way out of poverty.
Mokhethi Shelile, Lesotho’s trade minister, spoke to Yalda Hakim about Trump’s tariffs, asking him what Lesotho had done to deserve them.
“I guess, absolutely nothing,” he says.
Shelile says The African Opportunity Act, which came into existence in 2000, caused Lesotho’s textile industry to grow quickly, but the country is now at the point “where we are going to have to re-evaluate”.
“The first thing we have to do, that we’re going to do quickly, is visit Washington, meet with the relevant authorities and show them our case,” he says.
“We have to make a case for Lesotho to be given its rightful tariff. We understand there’s a new government in the US with a different policy.
“We don’t have a problem with this. We have a problem with being evaluated using the wrong tariffs.”
Will Trump listen to Lesotho?
Given Trump made headlines last month for saying “nobody has ever heard of” Lesotho, it might be hard to get him to hear the tiny nation out.
“I believe there will be somebody to listen to us because I’ve been made to believe that President Trump is a negotiator,” Shelile says.
“He’s open to sitting down.”