Lesotho Faces Jobs Crisis As US Tariff Fears Grow
Lesotho has declared a national state of disaster due to “high rates of youth unemployment and job losses,” as the country grapples with uncertainty surrounding US tariffs and trade policies.
The declaration, effective until 30 June 2027, enables the government to take emergency measures under the Disaster Management Act to mitigate the economic fallout, especially among its youth. Unemployment stands at 30%, with youth unemployment nearing 50%, according to official figures.
The crisis intensified after the US under former President Donald Trump imposed steep tariffs—up to 50%—on Lesotho’s exports in April. Although now paused, a 10% tariff still applies, disrupting trade under the African Growth and Opportunity Act (Agoa), which previously allowed Lesotho duty-free access to the US market, primarily for textiles and garments.
The US-Lesotho trade relationship was valued at $240 million in 2024, mostly benefiting Lesotho. However, fears over Agoa’s possible non-renewal beyond September have led US buyers to hold back orders, endangering up to 40,000 jobs.
Lesotho’s textile-reliant economy has also suffered from the termination of US aid programmes, including USAID and Pepfar. The government has begun easing business registration for small and medium enterprises as part of recovery efforts.
This is Lesotho’s second state of disaster in recent times. Until March, the country was under an eight-month emergency due to food insecurity, with around 700,000 people facing hunger amid prolonged drought.
