Lesotho emerged as the hardest-hit country in the world by the US reciprocal tariffs imposed on many countries across the globe. This move by US President Donald Trump will have severe consequences for the economic wellbeing of this tiny nation.
Tariffs Imposed on Lesotho
The landlocked nation faces 50% tariffs on all goods exported to the US. Trump previously claimed that Lesotho charges the US 99% on all goods coming from the US to the country.
Trade Deficit in Lesotho
According to the Sydney Morning Herald, Lesotho only imports $2.8 million ($4.5 million) worth of US goods, meaning the trade deficit – while relatively small compared to other countries – reflects a significant imbalance between exports and imports. While the $237.3 million ($378 million) worth of goods imported by the US from Lesotho is a tiny share of total imports.
Other Affected Southern African Countries
Lesotho is not the only country in Southern Africa affected by Trump’s ‘Liberation Day’ tariffs announcement. Other countries include Madagascar (47%), Mauritius (40%), Botswana (37%), Angola (32%), South Africa (30%), Namibia (21%), Zimbabwe (18%), Zambia (17%), and Malawi (17%).
North and West African Impacts
The African Business has reported that North Africa is also among the regions hit by the tariffs: Libya will be charged 31%, Algeria 30%, and Tunisia 28%. In West Africa, Côte d’Ivoire is the hardest hit at 21%, while Nigeria is subjected to a 14% tariff.
Impact on the African Growth and Opportunity Act (AGOA)
The publication further reported that “the reciprocal and universal tariffs appear to override the tariff-free provisions of the African Growth and Opportunity Act (AGOA), the US legislation that has regulated much trade with Africa in recent decades but is due to expire this September.”
South Africa’s Response to the Tariffs
It remains to be seen how these African countries will respond to this announcement; however, South Africa is already gearing up for the worst, as a 25% tariff on all foreign-made cars will come in at midnight on 3 April.
“South Africa, whose exports of vehicles and parts into the United States are estimated at over $2bn, is seeking consultations with the Trump administration on the auto tariff. Automobile exports from South Africa accounted for 64% of South Africa’s exports to the US under AGOA in 2024, according to the South African government,” reported AB.
Presidential Statement on Tariffs
In a statement on Thursday morning, the Presidency said it has noted with concern the newly imposed tariffs on South African exports to the United States of America.
‘Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity.
‘The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the US as an essential step to secure long-term trade certainty.’
US-South Africa Tariff Negotiations
According to the BBC, South Africa charges 60% on US imports – although this is not just tariffs – and in turn, Trump said his country would implement a “discounted” 30% tariff on South Africa.
“They have got some bad things going on in South Africa. You know, we are paying them billions of dollars, and we cut the funding because a lot of bad things are happening in South Africa,” said Trump as he announced the tariffs.
Impact on the European Union
Other countries that would be hard hit by the tariffs include the European Union (EU). Trump has imposed a 20% tariff on the EU, which the Union said it will not take this lightly.
According to the Sydney Morning Herald, the EU has the world’s largest bilateral trade and investment relationship with the US. Roughly €4.4 billion ($7.7 billion) is traded between the two regions every day. Germany, Ireland, and Italy are the biggest exporters to the US.
“The US has a trade deficit with the EU totalling €157 billion ($273 billion), with Trump claiming the EU ‘rip us off’. The EU has a 10 per cent ‘Most Favoured Nation’ (MFN) tariff on cars, as well as tariffs on goods like clothing and footwear.”
Please tell us how do you think Lesotho and Africa should respond to these tariffs?
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