Keywords:
- AGOA exports regain zero-duty access
- Lesotho escapes new Section 301 tariffs
- December expiry keeps factories uncertain
LESOTHO’S AGOA-eligible exports have returned to zero-duty treatment in the United States after a temporary 10 percent surcharge expired and Washington excluded the country from a new tariff action targeting 60 economies.
The relief gives Lesotho’s garment manufacturers a valuable competitive opening, but it remains time-limited. AGOA is authorised only until December 31, 2026, leaving factories and American buyers facing another decision point within five months.
Lesotho escapes new US duties
The Government of Lesotho said qualifying exports would enter the US duty-free from July 24 because the kingdom was not included in Washington’s Section 301 action against economies it says failed to enforce bans on goods produced with forced labour.
The US Trade Representative imposed duties of 10 percent or 12.5 percent on most imports from the 60 affected trading partners, subject to product exemptions and some country-specific calculations.
Lesotho’s exclusion preserves AGOA preferences for products that satisfy the programme’s eligibility and origin rules. Suppliers in affected countries may now face higher costs, while qualifying Lesotho goods avoid the additional tariff.
Tariff journey was not a straight line
Bloomberg described the development as a move from the world’s highest tariff to duty-free access. The official chronology is more complicated.
In April 2025, President Donald Trump’s administration announced a 50 percent reciprocal tariff for Lesotho. The rate was later reduced to 15 percent, a development Africa Briefing reported as a major but incomplete reprieve.
On February 20, 2026, the US Supreme Court ruled that the International Emergency Economic Powers Act did not authorise the president to impose tariffs.
The White House subsequently ended the reciprocal tariff actions based on that law, a decision that reshaped Africa’s trade calculations.
Washington then introduced a separate 10 percent surcharge under Section 122 of the Trade Act. The temporary measure took effect on February 24 and expired at the start of July 24.
Garment factories gain breathing space
The return to zero-duty treatment matters most for Lesotho’s textile and apparel industry, one of the country’s largest private-sector employers and an important source of jobs for women.
Reuters reported that tariff uncertainty led US buyers to cancel orders, forcing some factories to reduce production and cut jobs after the original 50 percent announcement unsettled the market.
Duty-free access may now help manufacturers compete for fresh orders. But recovery will depend on whether retailers believe the reprieve will last long enough to support production schedules, supplier contracts and new investment.
AGOA deadline clouds the victory
Trump signed legislation in February reauthorising AGOA through December 31, 2026, with retroactive effect from September 30, 2025.
The short reauthorisation restored trade preferences following AGOA’s lapse, but it did not provide exporters with the long-term certainty needed for major investment decisions.
USTR has also opened consultations on modernising AGOA, signalling that any successor programme could demand greater reciprocity and wider market access for US businesses.
That uncertainty makes this less a permanent trade victory than a narrow window for Lesotho to rebuild orders, protect jobs and diversify export markets. It also reinforces Africa’s case for accelerating AfCFTA trade and reducing reliance on preferences controlled by external partners.
