Lesotho's textile industry faces collapse due to high US tariffs

Lesotho, a small nation in Southern Africa, has recently been impacted by tariffs imposed by the United States under the administration of President Donald Trump. On a significant scale, the US levied a 50% reciprocal levy on imports from Lesotho, a move branded as one of the highest tariffs during its 'Liberation Day' initiative. Lesotho is well known as the 'denim capital of Africa,' producing garments for major American brands. This tariff poses a severe threat to Lesotho's economy, largely driven by the textile sector, which accounts for about 20% of GDP and employs 30,000 workers, primarily women. The US tariffs, initially calculated on flawed premises of trade deficits, have raised concerns regarding the methodology used and have been criticized by various economists and foreign governments. Lesotho's reliance on exporting textiles to the US means that this punitive measure could result in catastrophic job losses and factory closures, further impoverishing an already struggling population. Alongside Lesotho, Madagascar's textile industry faces similar challenges due to a 47% tariff, putting around 60,000 jobs at risk. With foreign aid already on a decline and significant funding for health initiatives, the situation is exacerbated for workers and families dependent on these industries. If these tariffs remain, there could be dire economic ripple effects throughout both nations, indicating a critical juncture in trade relations and economic stability for low-income countries in Africa. Policymakers and industry leaders in these nations are currently seeking to engage in dialogue with US authorities, hoping to find a mutually beneficial resolution to alleviate the strain on their vital textile sectors and protect livelihoods.