This week, the Trump administration set its sights on a tiny, landlocked nation in southern Africa, imposing the steepest tariffs yet. This country, ranked among the world’s poorest, is none other than Lesotho.
Lesotho, despite its modest global presence, is a key player in denim manufacturing for American brands and now faces a daunting 50 percent tariff. It’s not alone in its shock; several other lower-income African countries were caught off guard by these high levies, which soared well above the usual 10 percent that affects most of America’s trade partners. Madagascar, a country where three-quarters of the people live in poverty, will now confront a 47 percent tariff on its apparel, vanilla, and other exports when they reach the U.S.
Other affected nations include Algeria, Angola, Botswana, Libya, and Mauritius, all seeing tariffs above 30 percent. South Africa, in particular, finds itself under intense scrutiny from the Trump administration.
President Trump has defended these sweeping tariffs, suggesting that the current global trading system has been taking advantage of the United States, casting it as the one bearing the weight for the rest of the world’s freeloaders.
However, it’s essential to note that Lesotho’s trade presence isn’t exactly imposing. Last year, the country imported under $3 million in goods from the U.S. while exporting $240 million worth of goods there.
These tariffs arrive at a challenging time for Africa as a whole. Recently, the Trump administration also withdrew billions in aid that had been vital for various African nations, supporting their healthcare systems and disaster relief efforts.
Meanwhile, African governments are grappling with a foreign debt that surpasses $1.1 trillion, forcing many to spend more on debt repayments than on crucial sectors like health care or education.
Though Africa’s manufactured exports to the U.S. are relatively minor, for countries like Lesotho, the tariffs’ repercussions are huge. Denim and diamond exports constitute over a tenth of the nation’s GDP.
“This tariff decision is economically devastating,” stated Jacques Nel, head of Africa Macro at Oxford Economics. Lesotho, with a population of just two million, sees an annual output of approximately $2 billion, and its per capita income sits at a mere $975. “These tariffs aren’t about Lesotho’s actual import relationships,” Nel added. “They simply cannot afford to import much from the U.S.”
The textile sector, which emerged prominently after the 2000 African Growth and Opportunity Act, is Lesotho’s largest private employer and accounts for the bulk of its exports. That act, designed to boost manufacturing by scraping duties on sub-Saharan goods, is set to expire soon—though Trump’s recent tariff move effectively ends it now.
Lesotho’s factories have been churning out garments for big names like Levi’s and Wrangler, and even Mr. Trump himself has some connection—his Trump-branded Greg Norman golf shirts are labeled “Made in Lesotho.”
Speaking to the media, Lesotho’s trade minister, Mokhethi Shelile, highlighted that the nation has 11 factories employing 12,000 workers, with 70 percent of their production heading to the U.S. “We’re a small economy,” Shelile remarked. “We need to negotiate with the U.S. administration because these tariffs are unfounded.”
Africa’s bigger textile producers, like Madagascar facing a 47 percent tariff and Kenya with a 10 percent tariff, will also feel the impact. Similarly, South Africa, which engages in a greater volume of trade with the U.S. by exporting automobiles, agricultural products, etc., will be significantly affected as noted by Thea Fourie from S&P Global Market Intelligence.
Interestingly, African nations focusing on exporting energy or critical minerals won’t experience the tariff blows since these items have been spared.
While the U.S.’s imposition hits the relatively small $39 billion worth of goods from Africa, China is rolling out the welcome mat, having waived all import duties on goods from 33 African countries in December.
There’s a broader worry regarding the ripple effects these tariffs might have on the global economy, dimming outlooks over the past week and hinting at slower growth.
“African countries not directly facing severe tariffs will still feel the pinch,” stated Jayati Ghosh, an economist at the University of Massachusetts at Amherst. Historically, economic downturns hit the poorest hardest, potentially hindering trade with partners like China and Europe, and making investors wary.
If inflation triggers interest rate hikes from central banks, African countries with substantial debt could face a harsh double blow—higher loan payments priced in dollars combined with a weakened export income to perk up foreign exchange.
Mavis Owusu-Gyamfi, head of the African Center for Economic Transformation, suggests that the way forward lies in strengthening regional trade networks within Africa—a longstanding objective. “Building intra-African trade is the opportunity the continent needs to seize,” she emphasized.
On the ground insights were provided by Zimasa Matiwane reporting from Lesotho.
