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How Tiny Lesotho Ended up with the Highest US Tariffs in the World

Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
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How Tiny Lesotho Ended up with the Highest US Tariffs in the World

Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)

If you have ever bought a pair of jeans from an American brand like Levi’s or Wrangler, chances are they were manufactured at a factory in the small southern African nation of Lesotho.

Textile manufacturing is one of Lesotho's key industries, exporting some 75% of its output to the United States.

This is expected to change after US President Donald Trump slapped a 50% tariff on imports from Lesotho, the highest among all countries. According to Trump, Lesotho charges a 99% tariff on US goods, but the government said it doesn't know how the US administration calculated that figure. Government officials did not say Thursday what Lesotho's tariffs on US goods are.

Here is what the high tariffs mean for Lesotho:

A country ‘nobody has ever heard of’

Trump made fun of Lesotho in a speech in March, calling it a nation that “nobody has ever heard of.” Lesotho's foreign minister reminded him that the US has a diplomatic mission there.

Last year, the landlocked kingdom bordered on all sides by South Africa with a population of 2.3 million people, celebrated 200 years of the founding of the Basotho nation and 58 years of independence from British rule.

Its picturesque scenery and mountainous views draw visitors from Africa and across the world, and during winter, Lesotho becomes one of the most sought-after skiing destinations.

What are Lesotho's exports and the economy?

Lesotho does not pay tariffs on exports to Botswana, Namibia, South Africa and Swaziland since it is a member of regional economic blocs such as the Southern African Customs Union. Main exports include clothing, diamonds, water, power, wool and mohair.

The new tariffs announced by Trump mean that American consumers will pay more for goods made in Lesotho, making them less competitive in the US market.

According to the Office of the US Trade Representative, in 2024, US-Lesotho bilateral trade stood at $240.1 million. Apart from clothing, Lesotho's exports also include diamonds and other goods.

Classified as a lower-middle income country by the World Bank, nearly half of Lesotho's 2.3 million population live below the poverty line, while a quarter are unemployed.

How has Lesotho reacted to tariffs?

Lesotho’s Trade Minister Mokhethi Shelile said his country will be on the prowl for new markets and use the Africa Continental Free Trade Area to increase exports to favorable destinations in Africa.

The government would also urgently send a delegation to the US to negotiate a workable arrangement. Shelile said he's concerned about the possible closure of textile factories, which employ about 12,000 people in Lesotho.

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US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
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US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)

Massive planned US duties on solar panels made in Southeast Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say.
Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia.
The levies follow an investigation, launched before US President Donald Trump took office, into "unfair practices" in the countries, particularly by Chinese-headquartered firms, AFP said.
If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10-percent levies for most countries, and 145 percent on Chinese-made goods.
For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 percent of every stage of the manufacturing process.
The new tariffs "will practically make solar exports to US impossible commercially", said Putra Adhiguna, managing director at the Energy Shift Institute think tank.
Southeast Asia accounted for nearly 80 percent of US solar panel imports in 2024.
And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components.
For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news.
Many shifted operations to Southeast Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries.
The proposed new duties range from around 40 percent for some Malaysian exports to an eye-watering 3,521 percent for some Cambodia-based manufacturers.
- Tariffs 'accelerate' transition -
But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement.
"The tariffs and trade war are likely to accelerate the energy transition in Southeast Asia," he said.
China will "supercharge efforts" in regional markets and push for policy and implementation plans to "enable fast adoption of green energy across the region", driven by its exporters.
Analysts have long warned that countries in the region are moving too slowly to transition from planet-warming fossil fuels like coal.
"At the current pace, it (Southeast Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels," said energy think tank Ember in a report last year.
For example, Malaysia relied on fossil fuels for over 80 percent of its electricity generation last year.
It aims to generate 24 percent from renewables by 2030, a target that has been criticized as out of step with global climate goals.
The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember.
So far, the local solar industry has been "largely opportunistic, focused on leveraging domestic resources or labor advantages for export gains", he told AFP.
Cut off from the US market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that "could serve as a natural hedge against external volatility".
Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region.
"Success hinges on turning this export-led momentum into a homegrown cleantech revolution," said Yang.
"Clearance prices" may be attractive to some, but countries in the region and beyond may also be cautious about a flood of solar, said Adhiguna.
Major markets like Indonesia and India already have measures in place intended to favor domestic solar production.
"Many will hesitate to import massively, prioritizing trade balance and aims to create local green jobs," he said.