Trump Tariffs Hit Small African Economies
The Trump administration recently imposed its harshest new tariff on Lesotho, a small, landlocked country in southern Africa. Known for producing denim used in American jeans, Lesotho now faces a 50 percent tariff — a major blow to one of the world’s poorest nations.
Several other African countries were also hit hard. Madagascar, where three-quarters of the population lives in poverty, now faces a 47 percent tariff on its apparel and vanilla exports. Algeria, Angola, Botswana, Libya, Mauritius, and South Africa were similarly affected, with tariffs surpassing 30 percent.
President Trump defended the tariffs by claiming the global trade system has taken advantage of the U.S. for too long. Yet Lesotho imported less than $3 million in goods from the U.S. last year while exporting $240 million — a tiny footprint in global trade.
These tariffs come as African countries are already struggling. The Trump administration recently cut billions in aid that supported health care and disaster relief, while governments on the continent face over $1.1 trillion in foreign debt, often spending more on repayments than on education or health.
Although Africa’s overall exports to the U.S. are small, countries like Lesotho feel the impact deeply. Denim and diamond exports account for more than 10% of Lesotho’s GDP. With a population of two million and a per capita income under $1,000, the stakes are high.
Lesotho’s textile industry, the largest private employer, grew under the African Growth and Opportunity Act (AGOA), which removed U.S. duties on sub-Saharan exports. The law is set to expire this year, but Trump’s tariffs effectively ended its benefits early.
Ironically, Trump-branded Greg Norman golf shirts have labels that read “Made in Lesotho.” Lesotho’s trade minister said the country’s 11 factories, employing 12,000 workers, send 70% of their goods to the U.S. He argued the new tariffs aren’t based on facts and urged talks with U.S. officials.
Other key African textile exporters like Madagascar and Kenya will also be affected, though South Africa faces the largest economic blow due to its broader trade with the U.S. — including cars and agricultural products.
Energy and certain mineral exports have been exempt from tariffs, but the broader economic fallout is a growing concern. While the U.S. imposes duties, China is moving the other way, eliminating import taxes from 33 African nations to encourage trade.
The ripple effects could be significant. Even countries not facing high tariffs may suffer as the global economy slows. Inflation and rising interest rates could worsen debt burdens, while weak trade prospects deter investment. African leaders say the solution lies in expanding intra-African trade to reduce dependence on external markets.
