Lesotho’s government has welcomed a reduction in U.S. tariffs on its exports from a threatened 50% to 15%, though officials vow to continue pushing for lower rates to protect the nation’s critical textile sector. The revised tariffs, effective August 7, follow months of intense negotiations after the U.S. initially imposed steep levies in April under its America First Trade Policy, which disrupted Lesotho’s long-standing duty-free access to American markets.
Trade Minister Mokhethi Shelile described the 15% rate as a partial victory during a press briefing in Maseru, acknowledging it would ease pressure on exporters but stressing that Lesotho had sought a 10% cap. “This reduction will alleviate challenges for our industries, especially textiles and apparel, which employ thousands,” he said. The sector, a cornerstone of Lesotho’s economy, faced severe strain after losing preferential access under the African Growth and Opportunity Act (AGOA), which had allowed duty- and quota-free exports to the U.S. since 2000.
The U.S. temporarily lowered tariffs to 10% during a 90-day negotiation window ending July 31. Shelile detailed Lesotho’s diplomatic efforts to secure the compromise, including talks with the U.S. Embassy in Maseru, lobbying by U.S.-based advocates warning of higher consumer prices, and high-level engagement led by Finance Minister Retselisitsoe Matlanyane and Lesotho’s embassy in Washington. Despite the progress, Shelile emphasized that negotiations would persist to secure “the minimum tariffs applicable to U.S. trading partners.”
The tariff dispute highlights the fragility of Lesotho’s export-driven economy, which relies heavily on textile manufacturing. AGOA’s benefits had enabled the sector to expand significantly, providing livelihoods for over 40,000 workers, predominantly women. The sudden loss of duty-free status in April raised fears of factory closures and job losses, amplifying urgency in diplomatic talks.
Shelile reaffirmed the importance of U.S. trade ties, noting, “The U.S. remains a key partner, and this relationship demands sustained attention.” Meanwhile, regional efforts to strengthen economic diplomacy are advancing, with plans to launch a SADC-USA Dialogue Forum at the ongoing Southern African Development Community (SADC) Summit in Madagascar. The forum aims to foster broader trade collaboration between the 16-nation bloc and the U.S., potentially mitigating future disruptions.
While the 15% tariff offers temporary relief, analysts warn that long-term stability hinges on renewed preferential agreements or deeper integration into U.S. supply chains. For now, Lesotho’s focus remains on balancing immediate economic pressures with strategic negotiations to safeguard its export sector.
