Lesotho’s economy is facing a serious setback following the recent tariff hikes imposed by the United States. The small southern African nation, which has long benefited from duty-free access to the U.S. under the African Growth and Opportunity Act (AGOA), is now seeing a 97% tariff on its textile and apparel exports. This development threatens thousands of jobs and could push the country’s struggling economy into deeper distress.
The textile industry, a key economic driver in Lesotho, employs over 40,000 people, with the majority being women. Many factories in the country rely on the U.S. market, exporting garments for major American retailers. However, with the increased tariffs, production costs have surged, making Lesotho’s exports less competitive. Factory owners are already warning of potential layoffs, which could lead to widespread unemployment in a country where over 30% of the population lives below the poverty line.
Experts argue that the tariff hike is part of a broader shift in U.S. trade policies, as Washington reevaluates its preferential agreements with African nations. While discussions are ongoing to renew AGOA beyond its 2025 expiration date, Lesotho’s economy is already feeling the impact. 
If the tariff policy is not reversed, Lesotho may be forced to seek alternative markets, but shifting trade relationships takes time. Meanwhile, local businesses and workers are calling on the government to engage in diplomatic talks with the U.S. to secure favorable trade terms and protect the country’s economic future.
For Lesotho, the stakes are high. Without urgent intervention, the nation’s hard-earned gains in employment and economic stability could unravel, leaving thousands vulnerable to poverty.
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