Lesotho faces grim future as US tariffs devastate textile industry

Lesotho, a small landlocked country in Southern Africa, is bracing for an economic crisis as new tariffs imposed by the United States threaten its textile industry.

The US recently slapped a 50% tariff on imports from Lesotho, the highest rate for any single country.

This tariff is part of President Donald Trump's broader trade policy, which targets several African nations with high rates, including Madagascar, Mauritius, and South Africa.

The punitive measure aims at retaliating against the high tariffs imposed on US goods by these nations.

Lesotho’s economy relies heavily on the textile and apparel industry, with more than 35,000 people employed in the sector.

The introduction of the 50% tariff is expected to devastate the industry, which has thrived on duty-free exports to the US.

Thabo Qhesi, CEO of the Lesotho Private Sector Foundation, expressed his deep concern, as stated by AFP.

"The textile and apparel industry is going to die. This sector has been the lifeblood of Lesotho’s economy, and the new tariffs make it less attractive for foreign investors to continue operating there," said Qhesi.

"With the introduction of the 50-percent tariffs, Lesotho is no longer going to be lucrative for investors,"

Other African countries, including Madagascar, Mauritius, and Botswana, will also feel the sting of these tariffs, though Lesotho is expected to suffer the most due to its dependence on textile exports.

Madagascar, for instance, has approached the US embassy to seek clarification and explore possible adjustments to the tariffs, while Mauritius and Botswana are bracing for their own economic disruptions.

South African President Cyril Ramaphosa called the tariffs "a barrier to trade and shared prosperity," noting the detrimental effect they will have on regional economies.

The South African government has vowed to pursue new trade agreements to mitigate the impact, as motor vehicles and other sectors will also be hit by the new tariffs.

The looming economic hardship in Lesotho has sparked fears of widespread unemployment and economic instability, with the potential for broader repercussions on neighboring countries in the Southern African Customs Union and the Southern African Development Community.

"We now have to look amongst ourselves and say, within the customs union in Southern Africa, within the Southern African Development Community, and within the region of Africa, how we're going to respond to these issues," said South African Trade Minister Parks Tau.

The tariffs also come as part of a broader global trade conflict, which experts warn will disrupt value chains, inflate prices, and dampen world economic growth.

 "The new US tariffs will be disruptive of global value chains, invite retaliation, ignite inflation, dampen world economic growth and prompt repricing of risks in financial markets," said South African economist Raymond Parsons, as reported by AFP.

Many African nations are now facing the daunting task of finding new markets and diversifying their trade relationships in response to this aggressive move by the US government.

The situation in Lesotho is dire, and its government has yet to issue an official response to the tariff hikes.

But the looming prospect of job losses and economic hardship will likely push the government to seek alternative strategies to safeguard its economy.