Maseru, Lesotho — In March, President Trump referred to Lesotho as a place “nobody has ever heard of,” and recently, he imposed the highest “reciprocal” trade tariffs on the small African kingdom compared to any other nation.
The so-called “Liberation Day” tariffs announced by Mr. Trump mean a staggering 50% tax on imports from the impoverished nation, leading the Lesotho government to promptly announce its intention to send a delegation to Washington.
“We must urgently travel to the U.S. to engage with its officials and advocate for our situation,” said Trade Minister Mokhethi Shelile during a press briefing on Thursday. “My primary worry is the immediate shutdown of factories and the resultant job losses.”
Lesotho’s GDP stands at approximately $2 billion, significantly dependent on export markets, particularly textiles like jeans.
“Currently, there are 11 factories in our country that primarily export goods to the U.S. and provide jobs to around 12,000 workers,” Shelile mentioned. “Products that are in the production phase will be impacted by these tariffs and cannot be sent to the U.S.”
He indicated that he has requested factories to maintain operations “while we seek solutions” and expressed that the U.S.’s actions highlight the urgent need for his country to “diversify” its trade relationships, a process that is already underway.
“We cannot depend exclusively on the U.S.,” he asserted. “Although this transition is gradual, the initiative has already started.”
To assess the new tariffs, the White House utilized a method that accounts for a range of trade practices it considers unfair, such as currency manipulation and other trade barriers. Economists have raised concerns about the approach, and many foreign governments have criticized the tariffs as inequitable and misrepresentative of their trade standings with the U.S.
According to the White House’s calculations, Lesotho imposes tariffs and other barriers amounting to 99% on U.S. imports.
Below is an overview of the small kingdom, occasionally referred to as “the Switzerland of Africa” due to its mountainous terrain. This week, it suffered a more significant tariff increase from the White House than any other country.
Where is Lesotho?
Lesotho is entirely encircled by South Africa and is the largest of only three enclaved nations in the world, with a greater area than both San Marino and Vatican City, which are situated within Italy.
Covering approximately 11,720 square miles, it is comparable in size to Belgium but has a population of about 2.3 million compared to Belgium’s nearly 12 million residents.
Renowned for its stunning mountainous landscape, Lesotho styles itself as the “Kingdom in the Sky.”
Over 80% of the nation is situated 5,900 feet above sea level, housing southern Africa’s sole ski resort. Its highest point is Mount Thabana Ntlenyana, which rises to 11,424 feet.
Similar to Britain, it operates as a constitutional monarchy under King Letsie III, who is 61 years old and possesses no formal authority. The nation is governed by a prime minister, elected through national parliamentary processes.
What is Lesotho’s economy like?
With an annual GDP exceeding $2 billion, Lesotho predominantly relies on South Africa, its primary trading partner, which supplies most of its food in exchange for selling water.
The economy has heavily depended on textile exports headed for the United States, facilitated by the African Growth and Opportunity Act (AGOA) trade arrangement, which grants tariff-free access to the U.S. market for certain African goods. The imposition of tariffs by the Trump administration on African countries has raised concerns regarding the likelihood of renewing the AGOA agreement when it expires in September.
The traditional Basotho blankets are a national emblem, celebrated for their vibrant designs and woolen comfort. They often carry deep significance, symbolizing life, nationality, fertility, royalty, peace, love, and valor.
Lesotho ranks among the poorest nations globally, despite having significant mineral deposits. British mining company Gem Diamonds announced in 2018 that it discovered a 910-carat diamond in one of its many Lesotho mines.
The country also led the way in cannabis cultivation for medicinal purposes in Africa.
Unemployment remains a critical issue, soaring to nearly 25% in 2023, as reported by the World Bank.
The World Bank highlights that “poverty and inequality present considerable challenges.” Despite initiatives to enhance living conditions, a large segment of Lesotho’s population lives below the poverty threshold, with rural communities particularly affected. Access to essential services such as healthcare, education, and clean water remains limited, leading to adverse health outcomes and educational success. Elevated rates of HIV/AIDS and tuberculosis further strain the healthcare system, diminishing the workforce and amplifying the dependency ratio.
A connection to Prince Harry through charity, until recently
A charity co-founded by Prince Harry in Lesotho to assist individuals living with HIV encountered difficulties this month following a contentious board dispute, which resulted in King Charles III’s younger son stepping down as patron.
Chairperson Sophie Chandauka, originally from Zimbabwe, publicly accused the prince of “bullying” and participating in a “cover up,” allegations that the former royal has vehemently denied.
Established in 2006 by Harry and Prince Seeiso of Lesotho, the charity has since broadened its focus to Botswana.
The charity’s name, Sentebale, honors his late mother, Princess Diana, who tragically passed away in a car accident in Paris in 1997 when Harry was only 12 years old.
Lesotho’s battle with HIV/AIDS
At least one in four adults in Lesotho is HIV-positive, marking one of the highest infection rates globally.
According to the World Health Organization, over 230,000 individuals were receiving anti-retroviral treatments in 2021.
In 2020, the country achieved the UN’s “90-90-90” target, which requires that 90% of people with HIV are diagnosed, 90% of those diagnosed are on treatment, and 90% of those on treatment achieve viral suppression.
Lesotho also has the second-highest tuberculosis incidence globally, with an estimated 724 cases per 100,000 people.
