US President Donald Trump’s latest trade move has hit tiny African kingdom Lesotho with a whopping 50% tariff on its imports, making it the highest rate imposed by the US on any single nation. The tariffs, dubbed “Liberation Day” tariffs, were imposed after the US calculated that Lesotho imposes 99% tariffs and other barriers on US imports.
Lesotho’s Trade Minister Mokhethi Shelile expressed concerns over the immediate closure of factories and job losses, citing that 11 factories export goods to the US, employing 12,000 workers. The country relies heavily on textile exports, with a GDP of $2 billion, mostly bound for the US through the African Growth and Opportunity Act (AGOA) trade deal.
Lesotho is surrounded by South Africa and has a population of around 2.3 million, with over 80% of its land sitting at an altitude of 5,900 feet above sea level. The country is known as the “Kingdom in the Sky” due to its stunning mountainous terrain, which includes a ski resort.
Despite being heavily reliant on South Africa for imports and having a GDP of $2 billion, Lesotho’s economy has struggled with poverty, unemployment, and HIV/AIDS. Over 25% of the population lives below the poverty line, and access to basic services remains limited, contributing to poor health outcomes and educational attainment.
The US tariffs have sparked questions over how likely the White House is to renew the AGOA pact when it expires in September. The trade deal has been a significant contributor to Lesotho’s textile exports, but the country is already exploring diversifying its trade relationships.
Source: https://www.cbsnews.com/news/trump-tariffs-biggest-lesotho-what-to-know-tiny-african-kingdom