Keypoints:
- Lesotho wins US tariff battle after months of uncertainty
- Trump reduces rate from 50 percent to 15 percent
- Threat caused factory closures, layoffs, and cancelled orders
US President Donald Trump has slashed punitive tariffs on Lesotho exports from 50 percent to 15 percent, easing the economic chokehold that left the mountain kingdom’s textile industry in crisis, according to Reuters.
The executive order, signed on July 31, 2025, was part of a wider recalibration of reciprocal tariffs targeting dozens of US trade partners.
Months of tariff threats and economic pain
In April 2025, the Trump administration announced sweeping duties of up to 50 percent on countries it claimed maintained steep tariffs on American goods. Lesotho was singled out for the highest rate after Washington alleged it levied 99 percent duties on US imports — a figure Lesotho has repeatedly disputed.
The announcement immediately triggered uncertainty in Lesotho’s key export sector. US importers cancelled large clothing orders under the Africa Growth and Opportunity Act (AGOA), which underpins thousands of jobs. Many factories were forced to close production lines or lay off workers amid the looming trade squeeze.
‘Forget about producing for the US’
Teboho Kobeli, owner of the jeans manufacturer Afri-Expo, told Reuters earlier this year that the uncertainty was devastating:
‘If we still have these high tariffs, it means we must forget about producing for the US and go as fast as we can looking for other available markets.’
By mid-July, Lesotho’s government had declared a national state of disaster, citing widespread job losses and collapsing export earnings caused by the tariff threat.
A 15 percent rate — relief but not recovery
The reduction to 15 percent offers some breathing space, but analysts warn that the damage has already been done. Orders remain sluggish as US buyers hesitate to re-enter the Lesotho market until trade rules stabilise.
Lesotho’s trade ministry maintains that the US figure of 99 percent tariffs on American goods is ‘unfounded and misleading’, raising concerns that the tariff standoff was based on flawed data or political motives.
AGOA and long-term trade stability at risk
Lesotho’s economic future remains tightly tied to AGOA, the flagship U.S. trade programme for African nations, which is due to expire in September 2025. Observers warn that aggressive U.S. tariff tactics could undermine faith in AGOA and leave vulnerable economies like Lesotho exposed to future shocks.
‘This temporary relief doesn’t erase months of damage,’ one regional trade analyst said. ‘Without a long-term fix, Lesotho’s textile industry remains on shaky ground.’
