Lesotho has announced a national state of disaster regarding the nation’s “high levels of youth unemployment and job losses” as uncertainty regarding US tariffs strikes the landlocked country.
Lesotho was targeted with higher tariffs than any other nation – 50% – when they were first announced by President Donald Trump in April, although they have since been suspended. Deputy Prime Minister Nthomeng Majara stated that the state of disaster would remain in effect until 30 June 2027. Lesotho’s unemployment rate is 30% but for youths it is nearly 50%, official data indicates.
The proclamation, by the nation’s Disaster Management Act, enables the state to “take all necessary measures to minimise the effects of disasters” among others. Lesotho officials – a nation of slightly more than two million – declare the decision will enable the government to redirect money rapidly into programs that put young people into employment and jumpstart the economy.
A number of ministries have already revealed preliminary moves, such as abolishing registration fees for small- and medium-scale start-ups. The garment-based economy was already reeling from record-high youth unemployment before Trump cut assistance and imposed higher trade barriers, a report by AFP said.
Ramaphosa is against Trump’s 30% tariff for South Africa Lesotho was among the largest beneficiaries of America’s African Growth and Opportunity Act (AGOA), which provides preferential trade access to certain nations to foster their economic development.
The two nations exchanged products valued at $240m (£187m) in 2024, primarily Lesotho exports to the US, specifically clothing and textiles. The purpose of one of Trump’s objectives with the tariff declaration is to lessen his nation’s trade deficit with the global community.
Though the tariffs of 50% have been halted, Lesotho’s exports to the US are still charged a tax of 10%, similar to other nations. The government has warned it could lose up to 40,000 jobs if Agoa is not renewed at the end of September, according to AFP.
Lesotho’s Trade Minister Mokhethi Shelile told South African business news site Moneyweb last month that US buyers were “not placing orders because they don’t understand what is going to happen”.
The nation was also badly affected by the cancellation of the US Agency for International Development (USAID) programmes globally. Lesotho is one of those nations which has been a beneficiary of the US President’s Emergency Plan for Aids Relief (PEPFAR) launched in 2003.
These critics have been arguing that the crisis has been in the pipeline for more than a year. Lesotho had been under an eight-month state of disaster on account of severe food shortages until March. Back then, the Prime Minister, Sam Matekane, indicated that approximately 700,000 Basotho were experiencing severe hunger, which was exacerbated by weeks of drought.
