In an exclusive interview with The Southern African Times, Lesotho’s Minister of Trade, Industry, Business Development and Tourism, Mokhethi Shelile, has sharply criticised the current U.S. tariff regime, characterising it as disproportionately detrimental to the economies of developing countries, including his own. According to Shelile, the prevailing structure of U.S. trade policy is exacerbating economic vulnerability in nations such as Lesotho, particularly in its pivotal textile sector.
Lesotho, classified by the United Nations as one of the world’s Least Developed Countries (LDCs), is a significant exporter of garments to the United States under trade frameworks such as the African Growth and Opportunity Act (AGOA). The textile and apparel industry remains central to the country’s formal economy, employing approximately 40,000 workers, based on figures from the International Organisation of Employers. The imposition of U.S. tariffs, Shelile explained, has caused factory closures, resulting in job losses that reverberate through ancillary sectors such as transportation, housing, and services.
“We are not only losing jobs; we are witnessing disruptions to livelihoods and broader social instability,” Shelile stated during the interview in Maseru. His remarks coincide with Lesotho’s recent declaration of a national state of disaster, triggered by escalating youth unemployment, which currently stands at 48 percent according to local media.
Shelile pointed out that while the United States maintains a significant services-based economy, its international trade policies are heavily skewed toward the regulation of goods. “Millions of dollars flow annually from Lesotho to the United States in payment for services such as Microsoft software licences,” he noted. These transactions, he argued, are largely unaccounted for in bilateral trade metrics and are excluded from tariff considerations.
Further complicating the accuracy of trade assessments, Shelile revealed that numerous U.S. goods enter Lesotho via South Africa and are not recorded in Lesotho’s official import statistics. This creates a skewed perception of trade balances and undermines the transparency of economic relations between the two countries.
Shelile expressed discontent with what he termed the “unilateral and discriminatory” nature of recent tariff increases, arguing that they undermine not only national economic sovereignty but also the principles of equitable global trade. He highlighted that African countries are increasingly being required to negotiate as collective blocs—excluding South Africa—before any direct bilateral engagement with the United States can proceed. “This delays progress and forces us to approach negotiations indirectly, despite the urgency of the economic issues at hand,” he added.
In response to the ongoing uncertainty surrounding future U.S. tariff policy, Lesotho has submitted a formal request for tariff waivers or reductions. However, with Washington showing no immediate signs of altering its approach, the outcome remains unresolved.
To counterbalance these headwinds, Lesotho is actively pursuing a strategy of trade diversification. According to Shelile, the country is strengthening economic integration with South Africa and leveraging platforms such as the African Continental Free Trade Area (AfCFTA). In parallel, it is exploring deeper trade and investment ties with China, Nigeria, the European Union and other major economies.
Despite the challenges, Shelile struck a cautiously optimistic note about the country’s resilience. “We are making every effort to safeguard our national interests, and through export diversification and deeper regional cooperation, we are confident that by this time next year, we will have overcome current challenges and positioned our economy on a renewed trajectory of recovery and growth,” he said.
As trade debates intensify globally, Lesotho’s experience underscores the complexities small economies face within a system often dominated by the priorities of larger nations. With the country grappling with structural unemployment and economic fragility, the call for more equitable trade terms remains a pressing issue—not only for Lesotho but for similarly positioned nations across the Global South.
