Trump Imposes 50% Tariff on Lesotho, the Highest Among Targeted Countries

The small southern African country of Lesotho has been subjected to a 50% trade tariff by U.S. President Donald Trump, marking the highest tariff placed on any country in his list of targeted economies.

Lesotho, a landlocked and economically modest nation with a GDP of just over $2 billion, has a notable trade surplus with the United States, primarily composed of diamonds and textiles, including Levi’s jeans.

In 2024, Lesotho’s exports to the U.S. totaled $237 million, which constitutes more than 10% of its GDP, according to Oxford Economics.

On Wednesday, Trump implemented sweeping new reciprocal tariffs on global trading partners, altering decades of established trade rules and raising concerns about potential price increases for consumers. Trump explained that the “reciprocal” tariffs were a response to duties and other trade barriers imposed on U.S. goods. According to the U.S. administration, Lesotho imposes a 99% tariff on American products.

In Africa, the move signals the end of the African Growth and Opportunity Act (AGOA), a trade initiative aimed at supporting the development of African economies by providing preferential access to U.S. markets, as noted by trade experts. This decision adds to the difficulties faced by the continent following the Trump administration’s reduction in USAID funding, which had been a critical source of assistance.

Lesotho, a mountainous nation with around 2 million residents, is surrounded by South Africa and had not yet commented on the tariff changes as of Thursday. However, the country’s foreign minister told Reuters last month that the reduction in aid had been particularly challenging, especially for the health sector, which had relied heavily on support due to Lesotho’s high rates of HIV/AIDS.

The formula used to calculate the U.S. tariffs based the amount on the trade deficit in goods with each country as a measure of unfair practices. The resulting tariff is half the ratio between the deficit and the value of goods imported from that country. This methodology means smaller countries like Lesotho and Madagascar, which import fewer goods from the U.S., face higher tariffs than wealthier nations.