Factory workers walking home after work outside the capital Maseru in Lesotho, Oct 6, 2022. The 50% reciprocal trade tariff on the tiny southern African mountain kingdom was the highest levy on US President Donald Trump's list of target economies.
MASERU (April 4): Lesotho scrambled to put together a delegation on Friday to head to Washington to engage with the US on tariffs that risk wiping out nearly half of its exports, its trade minister said, in what could be a death blow to its economy.
The 50% trade tariff on the tiny southern African mountain kingdom was the highest levy on US President Donald Trump's list of target economies.
Trump on Wednesday hit America's global trading partners with tariffs, upending decades of rules-based trade that campaigners have long said is exceptionally favourable to rich countries like the US.
Lesotho's exports to the US, mostly textiles for popular brands such as Levi's and Calvin Klein, added up to US$237 million (RM1.05 billion) in 2024 and account for more than a tenth of its GDP.
"We never saw this coming," said Ricky Chang, director of the Nien Hsing textiles factory, which makes Levi's jeans, on the outskirts of the capital, Maseru.
The factory makes 440,000 pairs of jeans for Levi's a month, he said, as rows of workers sat at sewing machines stitching.
"It came as a shocker, an absolute disaster. We will have no choice but to lay off some workers should push come to shove," he said.
Trade Minister Mokhethi Shelile told parliament on Friday that the 45% of exports went to the US so "the latest policy direction ... is shocking".
Shelile said that officials had already engaged the US embassy "to clarify and how, why Lesotho was included in the list of ... such high reciprocal tariffs".
He also said Lesotho was assembling a high-level delegation to the US "to try to maintain the current market dispensation".
In the medium term, he said the kingdom would "increase efforts to export to alternative markets, such as the European Union and the Africa free continental trade area".
Trump on March 5, in an address to the US Congress referred to Lesotho as a country "no one has heard of" to laughs from his audience. Lesotho's foreign minister, Lejone Mpotjoane, later said the remark was "quite insulting".
Encircled by a South African mountain range, the kingdom of two million people is one of the world's poorest countries, with GDP per capita of US$916 in 2023, according to World Bank figures.
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