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Home » News » Lesotho accuses US of unfair tariffs as textile sector reels under economic pressure

Lesotho accuses US of unfair tariffs as textile sector reels under economic pressure

August 2, 2025
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Maseru – Lesotho’s trade minister has sharply criticised the United States over what he described as an inequitable tariff regime that is inflicting serious damage on the southern African nation’s garment industry.

Mokhethi Shelile, the minister of trade, industry, business development and tourism, said the U.S. policy framework disproportionately harms developing nations such as Lesotho, while overlooking the broader scope of trade imbalances—particularly in the services sector.

“Each year, we pay millions for services like Microsoft licences, yet these payments are conveniently ignored in U.S. trade calculations,” Mr Shelile told Time Africa. “At the same time, American goods routed through South Africa are routinely omitted from our import data.”

Workers iron jeans at a textile factory in Maseru, Lesotho, July 29, 2025. (Xinhua/Wang Guansen)

Lesotho, a mountainous enclave surrounded by South Africa, is one of Africa’s leading textile exporters to the U.S., but its economy remains vulnerable. Around 40,000 workers are employed in the garment sector, which serves as a rare source of formal employment in the country of 2.3 million people.

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However, Mr Shelile warned that continued tariff pressures could push the sector into decline, with knock-on effects across transport, housing and other parts of the economy. “This is not just an industrial concern—it’s a question of national stability,” he said.

The United Nations classifies Lesotho among the world’s least developed countries. According to the International Organization of Employers, the country’s textile industry has long benefited from preferential access to the U.S. market under the African Growth and Opportunity Act (AGOA), but that advantage is now under threat.

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Last month, the government in Maseru declared a state of national disaster in response to soaring unemployment, particularly among the youth. The youth jobless rate now stands at 48 per cent, according to local media reports.

Mr Shelile criticised what he called Washington’s “unilateral and discriminatory” approach to tariffs, arguing that such measures disrupt global supply chains and force African nations into unfavourable bloc negotiations. “The U.S. insists on dealing with sub-Saharan Africa as a single negotiating unit—excluding South Africa—which makes bilateral engagement nearly impossible,” he said.

Lesotho has formally requested a waiver or reduction in tariffs, but officials remain cautious about the prospects for a favourable outcome.

“We are making every effort to safeguard our national interests, but the direction of the next U.S. tariff review is far from clear,” Mr Shelile said. Nonetheless, he expressed optimism that diversification efforts could yield results in the months ahead.

Workers arrange clothes at a textile factory in Maseru, Lesotho, July 30, 2025. (Xinhua/Wang Guansen)

The country is seeking to deepen trade ties within the African Continental Free Trade Area and expand partnerships with China, Nigeria, the EU and others. “With export diversification and stronger regional cooperation, we believe we can navigate this crisis,” the minister said. “By this time next year, we aim to have the economy back on a path of recovery and sustainable growth.”

Tags: LesothoNewsTextileUS Ttariffs
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