Trump Cuts Lesotho Tariffs to 15% Amid Ongoing Trade Dispute

The United States has lowered tariffs on Lesotho to 15% following months of uncertainty that saw the Southern African nation threatened with a 50% duty, the highest rate imposed on any U.S. trading partner. The revised rate was announced Thursday in an executive order signed by U.S. President Donald Trump, who said the move reflected reciprocal trade measures.

The Trump administration argued Lesotho’s tariffs on U.S. goods, reportedly as high as 99%, justified the earlier threat of steep duties. However, Lesotho officials have disputed those figures, saying they are unclear on how Washington calculated them.

The tariff dispute began in April when the U.S. unveiled sweeping reciprocal tariffs targeting dozens of countries. While implementation was temporarily paused to allow negotiations, uncertainty surrounding the potential 50% rate caused significant disruptions to Lesotho’s economy. U.S. importers canceled textile orders, leading to factory slowdowns and mass layoffs in Lesotho’s export-dependent garment industry.

Teboho Kobeli, owner of Afri-Expo Textile Factory near the capital Maseru, said continued high tariffs would force companies to shift focus away from the U.S. market. “If we still have these high tariffs, it means we must forget about producing for the U.S. and go as fast as we can looking for other available markets,” Kobeli told Reuters earlier this year.

Lesotho, a small landlocked country surrounded by South Africa, relies heavily on textile exports to the U.S., particularly under trade agreements like the African Growth and Opportunity Act (AGOA). The reduced tariff rate could provide temporary relief, but concerns remain about future trade relations and the broader impact of U.S. protectionist policies on emerging economies.