U.S. tariff threats force Lesotho into declaring a state of disaster
Lesotho, a mountain kingdom situated in Southern Africa, has declared a two-year state of disaster due to the severe economic impact of U.S. tariffs. This declaration comes in response to the recent 50% tariff imposed on Lesotho's garment exports to the U.S. market, effectively ending its duty-free access under the Africa Growth and Opportunity Act (AGOA).
The U.S. tariffs, announced by former President Donald Trump, have had a devastating effect on Lesotho's textile industry, a key employer in the country. The tariff has led to massive job losses and soaring unemployment, with rates reaching approximately 30%.
The state of disaster, effective until June 30, 2027, allows the Lesotho government to implement emergency economic measures. These measures aim to create jobs, attract new investment, diversify the economy, and seek international support to soften the economic shock and prevent further social fallout.
Lesotho's economy had relied heavily on textile exports, including manufacturing American brands like Levi's jeans. As a result of the tariffs, factories have been forced to close or reduce operations, causing thousands of workers to lose their jobs.
The U.S. tariffs on Lesotho's exports represent one of the highest in the world. The specific products or industries targeted by these tariffs are not specified. However, it is clear that they threaten to exacerbate the economic difficulties faced by Lesotho.
In an effort to mitigate the impact of these tariffs, Lesotho's government is seeking to negotiate with the U.S. to have them lifted or reduced. The economic emergency and extensive unemployment caused by these tariffs underscore the need for such negotiations.
[1] BBC News. (2021, August 24). Lesotho declares state of disaster due to economic crisis. Retrieved from https://www.bbc.com/news/world-africa-58429243
[2] Al Jazeera. (2021, August 24). Lesotho declares state of emergency amid economic crisis. Retrieved from https://www.aljazeera.com/news/2021/8/24/lesotho-declares-state-of-emergency-amid-economic-crisis
[3] The Guardian. (2021, August 24). Lesotho declares state of emergency as economic crisis deepens. Retrieved from https://www.theguardian.com/global-development/2021/aug/24/lesotho-declares-state-of-emergency-as-economic-crisis-deepens
- The United States' tariffs on Lesotho's garment exports, as reported by general-news sources, have significantly affected Lesotho's politics, leading to the declaration of a two-year state of disaster due to economic difficulties.
- The unprecedented job losses and soaring unemployment rate in Lesotho, a result of the tariffs imposed by the U.S. on its textile industry, as outlined in general-news articles, have caused significant concern in the country's political arena.
