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Lesotho manufactures and exports well-known brand Levi’s to the US.
For illustrative purposes. Picture: iStock
Donald Trump previously announced a 50% tariff hike on products exported from Lesotho to the US. While Trump has put a 90-day pause on imposing the hike, the Lesotho government says his reason for imposing the tariff is unfounded.
Lesotho is not the only African country the Trump administration has hit with tariff hikes. Other countries facing them include South Africa, Kenya and Madagascar.
The tariffs are part of Trump’s reciprocal tariff policy, aimed at countries with significant trade surpluses with the US.
The ministry of trade and industry’s public relations officer in Lesotho, Lihaelo Nkaota, told The Citizen that Lesotho’s trade with the US contributes 12.5% to its Gross Domestic Product (GDP). Its main exports to the US are diamonds, textiles, and clothing.
Lesotho is one of the countries that manufactures and exports the well-known brand Levi’s to the US. In 2024, its textile exports amounted to $237 million (about R4.5 billion).
Trump wants to implement a 50% tariff on Lesotho due to its significant trade surplus with the US. According to the Trump administration, Lesotho’s exports have resulted in a substantial trade imbalance.
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Lesotho’s punitive tariff was reportedly driven by its R4 billion trade imbalance with the US, which is partially distorted by the impact of diamond exports.
She added that the textile industry is the second-largest employer in the country, with 12 910 women employed.
“Lesotho was considering engaging in negotiations with the US administration to clarify how and why Lesotho was included in the list of countries with such high tariffs. However, considering the latest developments of the 90-day pause on implementing these tariffs, Lesotho hopes the tariffs will be reviewed.”
She said it imports goods and services from the US, like Microsoft.
The secretary-general of the National Clothing Textile and Allied Workers Union (Nactwu) in Lesotho, Sam Mokhele, told The Citizen that manufacturing and textiles contributed 15% to the country’s economy.
He added that the 50% tariffs would hurt not only the textile industry but also industries such as retail, transport and education. According to his knowledge, the Lesotho government said it would revise its tariffs against the US, which might improve things.
The industry exports 70% to the US and 30% to different countries, including South Africa.
Trump’s administration said it is imposing tariffs in response to Lesotho’s high tariffs on American goods, which are around 99%. However, Mokhethi Shelile, Lesotho Trade and Industry Minister, denied this on DW News, saying it is not factual.
The country is willing to negotiate with the administration and clear up any misunderstandings. Other ways Lesotho is considering mitigating the impact are buying more US goods, like wheat, and considering partnerships with US companies for power generation projects.
If the 50% tariff is imposed, it will hurt Lesotho’s economy. He said this could cost 12 000 jobs and close 11 factories.
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The tariff rate is calculated by dividing a country’s trade surplus with the US by its total exports and dividing that by two.
According to Trump’s administration, Lesotho’s substantial trade surplus with the US, mainly due to textile and diamond exports under the African Growth and Opportunity Act (Agoa), resulted in the high 50% tariff.
The industry employs at least 40 000 people who are responsible for making carpets, jeans and blankets, while some of these are shipped to the US.
Shelile said at least 42% of the industry is responsible for exporting products to the US and this group will be significantly affected should the 50% tariffs become effective.
As of 2019, Levi’s started to be manufactured in developing countries such as Lesotho, Bangladesh, India, Egypt and Mexico.
However, some top-end styles in the Levi’s Premium and Levi’s Vintage Clothing lines are produced in the US.
Levi’s told The Citizen it would not be commenting on the issue.
“Levi’s is unable to provide any information on the matter. Should anything change or if we’re in a position to share more, we’ll communicate through our official channels,” it said.
Jee-A van der Linde, senior economist at Oxford Economics, said Lesotho stands out as the most vulnerable country on the continent to tariff hikes.
“In 2022, nearly 25% of the mountain kingdom’s total exports were textile exports to the US. Textiles are Lesotho’s primary export product and the largest private employer.
“Lesotho’s manufacturing industry is almost entirely focused on textiles, accounting for roughly 90% of manufacturing employment and exports. Consequently, our preliminary forecast lowered Lesotho’s GDP growth rate by 0.5% in 2026.”
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