Lesotho Faces Economic Crisis Amid U.S. Tariff Hikes

Lesotho is scrambling to address new U.S. tariffs that threaten to severely impact its economy by targeting nearly half of its exports. The trade minister is working to assemble a delegation to the U.S. in hopes of maintaining current trade terms amid concerns over job losses in the textile sector.

Lesotho is in urgent talks with U.S. officials to address recent tariffs that could severely impact its export-driven economy. With nearly 50% of its exports affected, primarily in textiles sold to major brands, the country faces a potential economic crisis, according to its trade minister.

The levies, part of a broader U.S. trade policy shift under President Donald Trump, have shocked Lesotho's government and businesses. Exports to the U.S. accounted for over a tenth of Lesotho's GDP in 2024, making the tariffs a significant threat to job stability and economic growth in the country.

Officials, including Trade Minister Mokhethi Shelile, are planning a high-profile visit to the U.S. to negotiate the terms and seek clarity on why Lesotho was targeted. Meanwhile, plans are underway to explore alternative trading partners within the European Union and the Africa free trade area.

(With inputs from agencies.)