The tiny African kingdom of Lesotho has been slapped with a 50% trade tariff by U.S. President Donald Trump, the highest imposed on any country under his latest wave of protectionist policies.
Lesotho, a landlocked nation of 2 million people surrounded by South Africa, was singled out by Trump in March as a country “nobody has ever heard of.” Despite its small size, it enjoys a trade surplus with the U.S., largely from diamond and textile exports, including Levi’s jeans. In 2024, its exports to the U.S. totaled $237 million—over 10% of its GDP, according to Oxford Economics.
Trump’s sweeping new tariffs, introduced Wednesday under the banner of “reciprocal trade,” have upended decades of trade norms. The White House claims Lesotho imposes a 99% tariff on American goods, justifying the severe penalty. However, trade experts say the move effectively dismantles the African Growth and Opportunity Act (AGOA), a program designed to boost African economies through preferential U.S. market access.
The decision also comes as Trump’s administration phases out USAID, cutting crucial funding for African nations. Lesotho, which has one of the world’s highest HIV/AIDS infection rates, had relied heavily on U.S. aid to support its struggling healthcare system.
The Basotho government has yet to comment on the tariff but previously warned that U.S. aid cuts were already straining vital services. Meanwhile, experts note that Trump’s tariff formula disproportionately punishes smaller economies like Lesotho and Madagascar, which import few American goods, while sparing wealthier trade partners.