Lesotho Faces Steep U.S. Tariffs Amid Global Trade Shakeup

The U.S. imposed a 50% reciprocal trade tariff on Lesotho, a move impacting its economy heavily due to its reliance on exports to the U.S., such as diamonds and textiles. The tariffs threaten the AGOA trade deal and exacerbate aid reductions, affecting Lesotho's development and health sectors.

In an aggressive move that could reshape international trade, President Donald Trump has imposed a 50% reciprocal trade tariff on the small African nation of Lesotho, marking it as the most heavily taxed state on his targeted list.

The tariffs put Lesotho's economic future at risk, a nation already struggling with poverty and reliant on a significant trade surplus with the United States. Diamonds and textiles, including Levi's jeans, are among its key exports, which accounted for more than 10% of its GDP in 2024.

The policy not only signals the collapse of the African Growth and Opportunity Act (AGOA) but also layers economic strain atop the existing impact from reduced international aid, crucial for supporting the nation's health sector.

(With inputs from agencies.)