Johannesburg (AP) – If you have already bought a pair of jeans from an American brand like Levi’s or Wrangler, there is a good chance that they were made in a factory of the Southern African Nation Lesotho.
Textile manufacturing is one of the main Lesotho industries, exporting some 75% of its production in the United States.
This should change after us President Donald Trump 50% slap price On imports of Lesotho, the highest of all countries. According to Trump, the Lesotho invoices a 99% rate on American products, but the government said it did not know how the US administration calculated this figure. Government representatives did not say on Thursday what the Lesotho prices were on American products.
Here is what the high prices mean for the Lesotho:
A country “no one has ever heard of”
Trump made fun of Lesotho in a speech in March, calling a nation that “no one has ever heard”. The Minister of Foreign Affairs of Lesotho reminded him that the United States had a diplomatic mission there.
Last year, the landlocked kingdom bordered by all sides by South Africa with a population of 2.3 million inhabitants, celebrated 200 years of foundation of the Basotho nation and 58 years of independence of British domination.
Its picturesque landscapes and mountain views attract visitors to Africa and around the world, and during the winter, Lesotho becomes one of the most sought after ski destinations.
What are the exports and the economy of Lesotho?
Lesotho does not pay prices on exports to Botswana, Namibia, South Africa and Swaziland because it is a member of regional economic blocks such as the customs union of southern Africa. The main exports include clothing, diamonds, water, energy, wool and mohair.
The new prices announced by Trump mean that American consumers will pay more for goods made in Lesotho, making them less competitive on the American market.
According to the office of the US trade representative, in 2024, the US bilateral trade-le-Lysoth is 240.1 million dollars. In addition to clothing, Lesotho exports also include diamonds and other goods.
Classified as a country with lower medium-midnight income by the World Bank, almost half of the population of 2.3 million in Lesotho live below the poverty line, while a quarter is unemployed.
How did Lesotho react to prices?
Lesotho’s Minister of Commerce, Mokhethi Shelile, said his country is looking for new markets and would use the continental free trade area of Africa to increase exports to favorable destinations in Africa.
The government would also urgently send a delegation to the United States to negotiate an feasible arrangement. Shelile said he was concerned about the possible closure of textile factories, which employ around 12,000 people in Lesotho.