The move is expected to significantly harm the small, landlocked African nation whose economy is heavily dependent on exports, particularly textiles and diamonds.

Lesotho, with a population of around two million and a GDP of just $2 billion, is among several African nations hit hardest under the Trump administration’s new “reciprocal tariff” policy. The tariffs were calculated based on bilateral trade deficits, disproportionately affecting smaller economies with limited US imports.

The country exported $237 million worth of goods to the US in 2024—over 10 percent of its GDP—largely through textile manufacturing, including supplying brands like Levi’s. The steep tariff threatens thousands of jobs in Lesotho’s apparel sector, which is its largest private employer.

The move also marks a de facto collapse of the African Growth and Opportunity Act (AGOA), a long-standing US trade program aimed at boosting African economies through tariff-free access to American markets. Coupled with earlier cuts to USAID funding under the same administration, the tariff now deepens the strain on Lesotho’s already fragile economy and health system.

While the Lesotho government has not officially responded, concerns are mounting over the survival of key industries and potential fallout across the broader Southern African region.