(CP) WASHINGTON – Written by Victoria Hayes.
The Trump administration has hit some of the world’s poorest countries in Africa with steep tariffs, including a 50% tax on goods from Lesotho, a small country that makes jeans for U.S. brands. The new tariffs are part of a wider plan to raise taxes on imports from nearly all trading partners.
Lesotho, which exports denim used in Levi’s and Wrangler jeans, is one of the hardest-hit. It exported $240 million worth of goods to the U.S. last year—mostly clothing—but now faces a tax that could seriously harm its economy. Other African countries like Madagascar, South Africa, Angola, and Kenya are also facing high tariffs, many over 30%.
This comes just weeks after the U.S. ended billions of dollars in aid programs to African countries that helped support health care and disaster response. Many of these nations are already struggling with large debts and poor access to education and medical services.
Experts say the new tariffs could be devastating. Lesotho’s economy is small—only $2 billion per year—and its textile factories are the largest source of private jobs, employing about 12,000 workers. Most of the clothes made there go to the United States.
“This will devastate the economy,” said Jacques Nel from Oxford Economics. He noted that Lesotho can’t even afford to import much from the U.S. due to poverty.
Lesotho’s trade minister, Mokhethi Shelile, said the U.S. tariff decision “is not based on facts.” He explained that 70% of the country’s factory output is sold to the U.S., and the tariffs could force factories to shut down. Ironically, some Trump-branded golf shirts are labeled “Made in Lesotho.”
The 2000 U.S. trade law that helped Africa grow its manufacturing—called the African Growth and Opportunity Act—is set to expire this year. But experts say the new tariffs effectively kill the program early.
Other African countries are also concerned. Madagascar now faces a 47% tariff on vanilla and clothing. South Africa, which sells cars and farm goods to the U.S., will likely suffer the most because of its higher trade volume.
While the U.S. is increasing trade barriers, China has been cutting them. In December, China removed all import duties on goods from 33 African nations, encouraging more trade with the continent.
Economists warn that the U.S. tariffs could slow down the global economy, and poor countries will be hit hardest. If inflation causes interest rates to go up, debt payments in Africa could become more expensive. That’s because many loans are in U.S. dollars, but these countries will now earn less from exports.
Mavis Owusu-Gyamfi, president of the African Center for Economic Transformation, said African nations need to trade more with each other to survive the changes.
“We have to look for ways to build trade inside Africa,” she said.