The week the world learned where Lesotho is thanks to Trump

In early March, Donald Trump referred to Lesotho as a place “nobody has ever heard of.” A month later, this small southern African country is on everyone’s lips after being hit with 50% tariffs on its exports to the United States, the highest rate announced by Washington for a tiny state, home to 2.3 million people and with a GDP of just over $2 billion per year.

For a few days now, and thanks to Trump, we now know that Maseru is the capital of Lesotho, that poverty plagues half of its population, that thousands of Levi’s jeans sold in the United States are made in its textile factories, and that the prevalence of HIV/AIDS is one of the highest in the world.

But why Lesotho? That’s exactly what Lesotho’s Trade Minister, Mokhethi Shelile, asked himself, with astonishment and surprise, during a brief appearance before the media last Thursday night. “We urgently need to travel to the United States to speak with their authorities and defend our case,” he said. The official predicted that some of the 11 textile factories will have to close and part of their workforce of 12,000 people will lose their jobs, although for the moment their activity will remain unchanged while the government “searches for solutions,” including the “diversification” of its export destinations.

“The United States is a vital trading partner for Africa, but in recent years, some countries on the continent have turned to other destinations, such as China, which will undoubtedly strengthen its presence in our region following Trump’s decisions,” explains Kwami Ossadzifo Wonyra, economist and professor at the University of Kara, Togo, in an interview with this newspaper.

After South Africa, the United States is Lesotho’s largest trading partner, accounting for 21% of its exports. These sales represent 10% of its GDP

Levi’s made in Lesotho

Lesotho, a small mountain kingdom, exports diamonds, clothing — especially jeans — and mineral water. After South Africa, the country it is surrounded by, the United States is its largest trading partner, accounting for 21% of its exports. These sales represent 10% of its GDP. Considering these figures, the damage these 50% tariffs will cause is more than evident in a state that poses no trade threat to the United States.

“Perhaps Trump’s decision is due to Americans wanting to protect their cotton producers. That’s the only logical reason one can find,” Ossadzifo Wonyra ventures.

But according to other economists, the answer could be different. Does Lesotho apply exorbitant tariffs on U.S. products, and is the United States simply applying the principle of reciprocity? It doesn’t seem that way. Lesotho is a member of the Southern African Customs Union (SACU), which also includes South Africa, Namibia, Eswatini, and Botswana. They all apply a common external tariff on their exports, but Washington will apply different rates: 30% to South Africa, 37% to Botswana, 21% to Namibia, and 10% to Eswatini.

The Trump administration’s calculations for a country like Lesotho are based primarily on the inequality of its trade, more specifically on a skewed balance against Washington. As a result, small, resource-poor countries that cannot afford to import from the United States were penalized more harshly. In 2024, while the United States exported only $2.8 million worth of goods to the small African country, its imports from Lesotho amounted to $237.3 million.

“There’s nothing Lesotho can do about it: they can’t change tariffs they allegedly charge the U.S. to reduce the tariff rate the U.S. ‘reciprocates’ with because, again, it’s not based on any tariff that they charge. Similarly they can’t do much about reducing the trade deficit they have with the U.S. because, again, they simply don’t have enough money to buy U.S. products,” economic analyst Arnaud Bertrand summarized on social media, stressing that this is the best example of the “economic incoherence” of these Washington announcements that “rather than addressing actual trade barriers, punish countries based on trade deficits.”

Some of the Levi’s worn by Americans are manufactured in Lesotho and exported thanks to the African Growth and Opportunity Act (AGOA), which allows certain African countries to ship products to the United States tariff-free. AGOA, signed into law by Bill Clinton in 2000, was intended to stimulate the economies of these countries and is due to be renewed next September, but the Trump administration’s decisions appear to mark its end.

We need to develop regionally to meet our needs. This could be an opportunity to reorient our trade toward our neighbors and also toward the Asian market”

Kwami Ossadzifo Wonyra, economist

“Perhaps it’s time for African countries to focus on promoting a free trade zone for our continent. We need to develop regionally to meet our needs. This could be an opportunity to reorient our trade toward our neighbors and also toward the Asian market,” believes Ossadzifo Wonyra.

The reality is that neither Lesotho nor most African countries are crucial to the U.S. economy. In 2024, U.S. imports from African countries totaled $39.5 billion (50% accounted for by South Africa and Nigeria), roughly the same amount it buys from a country like Mexico in just one month, and U.S. exports to Africa amounted to $32.1 billion, according to official figures.

AIDS patients in limbo

The tariffs are taking effect at a time when many African countries are already dealing with the effects of U.S. foreign aid cuts, particularly in the health sector.

This is also the case in Lesotho, where, according to UNAIDS, there are approximately 260,000 people diagnosed with HIV. The prevalence rate among adults aged 15 to 49 is over 18%, and the virus claimed 4,000 lives in 2023, making it the leading cause of death in the country.

Since Trump announced that most USAID programs would be suspended for 90 days to assess their suitability, 72% of the support that Lesotho receives from the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) has vanished, resulting in the loss of 804 health workers’ jobs, according to UNAIDS. In 2024, USAID invested $44 million in the fight against HIV/AIDS in Lesotho.

The African country’s Minister of Health, Selibe Mochoboroane, recently acknowledged that maintaining PEPFAR activities without support will be too expensive, and the government will have to adapt within available resources. Despite the headwinds, she expressed confidence that Lesotho can meet the UNAIDS 2030 targets: that 95% of people living with HIV be aware of their status, be on antiretroviral treatment, and have suppressed viral loads.

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