Trump’s 50% Tariff Risks Crippling Lesotho’s $2 billion Textile Industry

- Proposed U.S. tariff threatens Lesotho's largest private-sector employer. - Mass layoffs and factory closures prompt government "state of disaster." A proposed 50% tariff from U.S. President Donald Trump threatens to decimate Lesotho’s textile industry, the country's largest private-sector employer and a critical contributor to its economy. On July 12, 2025, Cryptopolitan reported on the devastating economic fallout from the announcement, which has already triggered mass layoffs and factory closures, prompting the government to declare a "state of disaster" amid mounting economic turmoil. The textile industry, which drives 10% of Lesotho’s $2 billion GDP, employed over 40,000 workers before the tariff announcement. While implementation remains uncertain, the mere prospect of such a steep tariff has prompted U.S. buyers, including major brands like Levi’s and Wrangler, to suspend orders. As a result, the plummet in demand has crippled production, caused widespread job losses, and left Lesotho’s economy in a precarious state. Lesotho’s Trade Minister, Mokhethi Shelile, warned that the industry could weather a tariff of 10% or less, but the proposed 50% rate would cause irreparable harm. In response, the government is racing to implement emergency measures, planning to create 60,000 new jobs in agriculture and construction. The government also established a $22.2 million fund for youth grants and entrepreneurial loans to alleviate a youth unemployment rate that exceeds 48%. Experts, however, remain wary of the industry’s recovery prospects. Analysts quoted by Yahoo Finance criticized the proposed tariff as disproportionate, noting that Lesotho constitutes a mere 0.02% of the U.S. trade deficit. The government is exploring alternative export markets like South Africa; however, analysts caution that these efforts are unlikely to compensate for the lost demand from U.S. buyers. Meanwhile, U.S. trade officials are reportedly developing a new negotiation framework for African nations, but details remain undisclosed. Lesotho continues to push forward with diversification strategies, but the shadow of trade uncertainty looms large and threatens long-term recovery efforts.