A sweeping U.S. tariff policy announced in April has plunged Lesotho’s vital textile industry into crisis, leaving thousands jobless and threatening the economic stability of one of Africa’s smallest and most vulnerable economies.
The new policy, introduced by U.S. President Donald Trump under the banner of “reciprocal tariffs,” imposed levies of up to 50 percent on imports from all trade partners, citing concerns over trade imbalances. For Lesotho – a landlocked country in southern Africa and one of the world’s least developed economies – the move has been devastating.
Lesotho’s textile industry, the country’s largest private employer, has long been a backbone of its export economy. The United States is the second-largest destination for Lesotho’s goods, accounting for nearly 10 percent of its GDP. In 2024 alone, exports to the U.S. were valued at $237 million.
Since the tariffs were enacted, American buyers have canceled about 80 percent of their orders, according to Trade and Industry Minister Mokhethi Shelile. The cancellations have already translated into 13,000 job losses, shrinking the industry’s workforce by more than a third.
“It’s unbelievable and unfair,” Shelile said in an interview last month. “This also violates World Trade Organization principles. Our young people are facing a life sentence of joblessness.”
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Lesotho declared a two-year state of disaster in July as unemployment surged to unprecedented levels. The country, home to just over 2 million people, already had a jobless rate of 25 percent and nearly half of its population living below the poverty line.
On the ground in Maseru, the impact is visible. Once-busy industrial zones now host groups of retrenched textile workers walking from factory to factory in search of opportunities that no longer exist.
Local manufacturers are also reeling. Afri-Expo Textiles, founded in 2016, once envisioned expansion across 10 industrial zones employing more than 10,000 people. But with U.S. contracts evaporating, the company has been forced to lay off nearly 500 workers.
Analysts warn that Lesotho’s plight is a stark reminder of Africa’s vulnerability to unilateral global trade decisions. The continent’s smaller economies, especially those dependent on single export sectors, remain heavily exposed to external shocks.
Lesotho’s case echoes concerns across Africa about overreliance on Western markets. While the U.S. tariffs directly affect Lesotho, they also highlight the fragility of industrialization efforts in other African nations seeking to build manufacturing sectors for global trade.
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In response, Lesotho is seeking to deepen ties with other Global South economies, broadening export markets and boosting small and medium-sized enterprises to stabilize its economy.
“We achieved economic growth in 2024, and we are still working toward 2025,” Minister Shelile said, stressing that cooperation with African neighbors and emerging economies is now critical for survival.
For workers in Maseru, however, the crisis is immediate. Idle production lines, abandoned orders, and widespread layoffs have left many questioning how long they can endure.
As Lesotho navigates the fallout, the situation stands as a warning across the continent: without diversified markets and stronger regional trade integration, Africa’s economies remain highly vulnerable to policy shifts far beyond their borders.
