Maseru: The U.S. tariff regime is unfair to developing countries such as Lesotho, and has dealt a heavy blow to the country's textile industry, a senior official from the landlocked nation in southern Africa has said.
According to Namibia Press Agency, Mokhethi Shelile, Lesotho's minister of trade, industry, business development and tourism, expressed concerns over the U.S. tariff policies and their impact on the nation's economy. Services such as Microsoft licenses, which Lesotho purchases for millions of dollars annually, have been overlooked by Washington. Shelile also mentioned that some U.S. goods enter Lesotho via South Africa and are mistakenly omitted from its import figures.
The U.S. tariff policies, centered on the export and import of goods, have been criticized for overlooking U.S. services exported globally. The U.S. economy is predominantly services-based. Lesotho, classified by the United Nations as one of the world's least developed countries, is one of Africa's largest garment exporters to the United States. Its textile industry is a key pillar of its economy, providing around 40,000 jobs, as noted by the International Organization of Employers.
Shelile warned that layoffs caused by U.S. tariffs could have a ripple effect on sectors like transportation and real estate, potentially undermining social stability. Last month, Lesotho declared a national state of disaster due to "high rates of youth unemployment and job losses" triggered by the U.S. tariff hike, with the youth jobless rate rising to 48 percent, as reported by local media.
Shelile criticized the U.S. unilateral imposition of discriminatory tariffs, stating that it "disrupts global supply chains and forces African nations to negotiate as blocs." He revealed that Lesotho is actively working to diversify its markets by strengthening ties with South Africa, engaging with the African Continental Free Trade Area, and seeking trade and investment partnerships with China, Nigeria, the European Union, and other economies.
Lesotho has formally requested a waiver or reduction of the U.S. tariffs. However, since Washington insists on negotiating with sub-Saharan African countries except South Africa as a single bloc, talks can only proceed indirectly at this stage. Shelile emphasized the country's efforts to safeguard its national interests amidst uncertain tariff policy outlooks.
Shelile added that "through export diversification and deeper regional trade and investment cooperation, we are confident that by this time next year, we will have overcome current challenges and put the economy back on a path to recovery and renewed growth."