Lesotho, a Small African Nation, Expects a Big Hit From Trump’s Tariffs

Jayati Ghosheconomist

Even African countries not facing very high tariffs are going to be suffering,

said Jayati Ghosh, an economist at the University of Massachusetts at Amherst

This has nothing to do with actual tariffs,

Mr. Nel said

There are 11 factories in the country, most of which export goods to the U.S. and provide employment to 12,000 workers,

Shelile said

We need to urgently travel to the U.S. to engage with its executives and plead our case,

Trade Minister Mokhethi Shelile told reporters Thursday

Poverty and inequality remain significant challenges,

the World Bank says

The textile and apparel sector is really a cornerstone of Madagascar’s economy … [Tariffs] will have a drastic effect on the country.”

Ketakandriana Rafitoson, a political science researcher at the Catholic University of Madagascar, said

I don’t understand how this is a reciprocal tariff because we really don’t charge that much in tariffs.”

Dr Ratjomose Machema, a lecturer in economics at the National University of Lesotho, said

Factory work is the only job I’ve known for many years,

she said, attaching a label to Gap clothing

My hope and wish is that our prime minister could somehow reach out to President Trump and ask him to at least show some compassion for Lesotho. If we lose our jobs here, I’m almost certain that many of us will end up sleeping on empty stomachs.”

In Lesotho, Nthabiseng Khalele, a garment worker sheltering from the rain after a long day in the factory, said

Today’s action simply asks other countries to treat us like we treat them. It’s the golden rule for our golden age.”

A fact sheet published by the White House to accompany Trump’s tariff announcement said

That being said, we recognise that we cannot rely solely on the American market.”

He added

Lesotho is also assembling a high-level delegation to the United States to try to maintain the current market dispensation,

Shelile said

The latest policy direction undertaken by the United States is shocking ... as (it) ... has been a very important market for Lesotho,

Trade Minister Mokhethi Shelile told parliament on Friday, ... adding that

Increased export costs would reduce competitiveness, potentially decreasing revenue and destabilising economies,

Nwanze of SBM Intelligence told Al Jazeera

Bad things are going on there.”

On Wednesday, during his announcement, Trump said

African countries aren’t known for making firm geopolitical stances, so many of them will try to hold on to AGOA, which means it will go into zombie mode rather than dying off,

he said

In particular, it punishes small developing countries like Cambodia that simply don’t have the capacity to buy much from the US,

wrote Tommy Xie, head of Asia macro research at Oversea-Chinese Banking Corp

China’s attempts to find new markets for goods previously destined to US will have to go somewhere at least in the short term,

said Elms of the Hinrich Foundation

Bangladesh is reviewing its tariffs on products imported from the United States,

said Shafiqul Alam, press secretary to interim leader Muhammad Yunus

African countries are being penalised for having trade surpluses, some of them achieved by pursuing export-driven development policies, as advised by the US,

said Yvonne Mhango, Bloomberg’s Africa economist