Lesotho Hit With Highest Tariff in the World By Trump

New Times
President Donald Trump has declared a 10% baseline tax on imports from 185 countries and even higher tariff rates on dozens of others, including 20 in Africa. (file photo).
3 April 2025
Daba Finance (Abidjan)

TLDR

  • U.S. President Donald Trump has imposed a 50% tariff on imports from Lesotho--the highest for any sovereign nation
  • The southern African kingdom becomes one of the biggest targets in the administration's push to offset trade imbalances with over 180 countries
  • Lesotho exported $264 million more to the U.S. than it imported in 2022, mainly in diamonds and apparel, according to data from the Tralac Trade Law Centre.

U.S. President Donald Trump has imposed a 50% tariff on imports from Lesotho--the highest for any sovereign nation under his newly announced reciprocal tariff framework. The southern African kingdom becomes one of the biggest targets in the administration's push to offset trade imbalances with over 180 countries.

The tariff, calculated using a formula based on Lesotho's 2024 trade surplus with the U.S., was "discounted" from a full reciprocal rate of nearly 100%. Lesotho exported $264 million more to the U.S. than it imported in 2022, mainly in diamonds and apparel, according to data from the Tralac Trade Law Centre.

Lesotho currently imposes a 99% tariff on U.S. goods. Roughly 70% of its exports to the U.S. had qualified for duty-free access under AGOA. Its trade ministry declined to comment. Lesotho now joins Saint Pierre and Miquelon at the top of the tariff list as the Trump administration targets small economies with large U.S. surpluses.

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Key Takeaways

The tariff on Lesotho highlights growing tensions between the U.S. and Africa over trade fairness and development strategy. The country's largest exports--apparel and diamonds--had benefited from U.S. duty-free access under AGOA, a cornerstone of U.S.-Africa trade policy for two decades. Lesotho's export-led strategy, developed in part with U.S. support, has helped create manufacturing jobs in a country where many youth migrate to South Africa in search of work. Now, with a 50% tariff, its competitive edge in the U.S. market is at risk. Economists warn the tariffs could undermine efforts to foster industrialization in Africa. Bloomberg Africa economist Yvonne Mhango said targeting Lesotho--despite its small size and strategic dependency on exports--runs counter to Washington's past trade and development messaging. If other AGOA beneficiaries face similar recalculations, it could accelerate Africa's pivot toward trade partners offering more stable market access, including China, the EU, and Gulf nations.

Read the original article on Daba Finance.

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