Trump’s new tariffs threaten Lesotho’s textile industry and U.S.-Africa trade

Lesotho’s textile sector faces a crisis after the U.S. announced a 50% tariff on its exports, jeopardizing thousands of jobs tied to the African Growth and Opportunity Act (AGOA). The trade deal, which grants duty-free access to the U.S. market, has fueled Lesotho’s garment industry, supplying major brands like Walmart and Gap.

Teboho Kobeli, owner of Afri-Expo Textiles, warned the tariff hike could price his goods out of the market, risking livelihoods for 2,000 employees. Analysts fear the move could shrink Lesotho’s GDP by 1% within two years.

While Kenya downplays the impact—facing only a 10% levy—AGOA’s future remains uncertain. Former UN trade official Mukhisa Kituyi calls the tariffs a “death knell” for African exporters, criticizing U.S. “disruptive populism” for undermining stable trade rules.

Experts warn the policy weakens U.S. influence in Africa, ceding ground to China. Michelle Gavin of the Council on Foreign Relations notes the tariffs lack economic logic, signaling a broader U.S. disengagement.

With AGOA set to expire in 2025, Africa may need to accelerate its continental free-trade zone and diversify partnerships. For now, the tariffs underscore the fragility of trade-dependent economies in a shifting global landscape.

 

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