Tariffs from US endanger tens of thousands of jobs in Lesotho

Lesotho, located in sub-Saharan Africa, is facing significant economic challenges due to proposed steep tariffs by the United States on its garment exports. This country is recognized as one of the few manufacturing success stories in the region and currently holds the title of the largest African exporter of garments to the US, a position bolstered by a trade agreement established during the Bill Clinton administration. However, recent changes in the US trade policy have resulted in the implementation of a 50% tariff on imports from Lesotho, which are among the highest rates in Africa. This tariff regime is expected to take effect after a 90-day grace period, putting at risk the livelihoods of tens of thousands of workers employed in the garment industry. The trade minister of Lesotho has expressed concerns that these levies could lead to a major economic crisis, severely impacting the nation’s capacity to pay for essential services such as electricity. In response to the looming crisis, the government of Lesotho has initiated discussions with US officials, offering several concessions to mitigate the adverse effects of the tariffs. These concessions include proposals to eliminate barriers to foreign investment in Lesotho and the possibility of accepting deportees from the US, aiming to foster goodwill and reduce the looming economic impacts of the tariffs. The stakes are high as the garment industry is crucial to Lesotho's economy, prompting urgent dialogue to avert widespread unemployment and financial instability.