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How jeans and diamonds push Lesotho go top of Trump tariff list
| The Mercantilist Policy April | 04/04/25 |
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Date: April 4th, 2025 8:48 AM Author: The Mercantilist Policy April (No Future) White House slap Lesotho wit di highest tariff rate, dis na according to di list wey US President Donald Trump release on Wednesday.
Americans wey dey bring in goods from di small southern African kontri go need to pay an additional 50% import tax.
US get a big trade deficit wit Lesotho, dem dey sell textiles – like jeans – and diamonds to America.
Di 50% rate for Lesotho na part of wetin Trump describe as "reciprocal tariffs" wey dey put on imports from dozens of kontris, including 20 in Africa. All nations dey face a minimum rate of 10%.
Nine tins about Lesotho - di kontri wey Trump say 'nobody don ever hear of' 6th March 2025 Lesotho Trade Minister Mokhethi Shelile react to di tori say im goment no go send delegation go Washington to argue against di new trade measure.
"My biggest concern na di immediate closure of factories and job losses," na wetin im tell tori pipo AFP on Thursday.
One of Trump plans wit im tariff announcement na to reduce im kontri trade deficit wit di rest of di world.
And dis give pipo clue as to why dem hit Lesotho hard.
According to White House figures, For 2024 while di US bin export just $2.8m (£2.1m) worth of goods to Lesotho, dia imports from di southern African kontri amount to $237.3m.
For dia calculations, US officials use di difference between di value of imports and exports to set tariff rates for different kontris.
In recent years, Lesotho don dey successful to sell textiles to US, dem use di African Growth and Opportunity Act (Agoa) well-well. Dis US law from 2000 allow eligible African kontris to send some goods to US without any tariffs on top.
Na President Bill Clinton sign am as law. Di koko about Agoa na to help African kontris to grow dia economies and create jobs, but dis tariffs fit threaten dia future.
Lesotho garment factories dey make jeans for major American brands like Levi and Wrangler in recent years.
Clothes dey make up nearly three-quarters of wetin Lesotho dey export to US – dem bi di second biggest trading partner afta South Africa.
Di value of dat US trade amounts to more dan 10% of dia total annual national income. Di extra costs wey di tariffs go lead to for American buyers fit reduce demand and affect Lesotho economy.
"Dis na devastating day for us," Teboho Kobeli, founder of Lesotho clothes manufacturer Afri-Expo Textiles, tell BBC Focus on Africa programme.
Im say di whole day im, im industry colleagues and di goment tok about wetin to do next.
Although im business, wey Oga Kobeli say dey employ around 2,000 pipo, fit look for oda markets, US dey so significant so "we no fit just shun di US market... we need to do everything wey we fit to bring [am] back".
Colette van der Ven, one lawyer wey specialise for international trade, tell BBC say di 50% figure wey Trump impose on Lesotho "make little sense logically".
She describe am as "ironic" say US dey punish Lesotho for di success wey dem enjoy under Agoa.
"Na di idea say kontris dey take advantage of US becos of trade deficit. Dis na new format about trade wey don make pipo to reason who dey benefit and who no dey benefit ".
What about oda African kontris? Oda African kontris wey US hit wit extra tariffs include 47% for Madagascar, 40% for Mauritius, 37% for Botswana and 30% for South Africa.
Dem hit Nigerian exports too - at a rate of 14%.
Kenya, Ghana, Ethiopia, Tanzania, Uganda, Senegal and Liberia dey among those kontris wey exports to US go dey subject to di baseline tariff of 10%. US no dey run a trade deficit wit dis kontris.
Trump say di reciprocal tariffs na "for kontris wey treat us badly".
During Wednesday announcement for White House, di Republican president say "cheaters" bin dey take advantage of US wey dey "pillaged" by foreigners.
"For more dan 50 years, dem dey rip off our taxpayers, but e no go happun again," Trump tok.
South Africa dey among di long list of kontris wey dem call "worst offenders", dat list also include China, Japan and di European Union. Dem now dey face higher US rates - payback for unfair trade policies, Trump tok.
"Some bad tings dey go on for South Africa. You know, say we dey pay dem billions of dollars, and we cut funding because a lot of bad tins dey happun for South Africa," im tok, bifor im begin name oda kontris.
US-South Africa relation begin get K-leg since Trump presidency start for January.
South Africa biggest export to US na platinum, wey dem fit comot from di import tax. But dia second biggest export – wey be cars – dem go hit am hard.
For statement, South African presidency condemn di new tariffs as "punitive", e say e fit "serve as a barrier to trade and shared prosperity".
"We now get to look amongst ourselves and say, within di customs union for southern Africa... how we go take respond to dis issues," South Africa Trade Minister Parks Tau tell tori pipo AFP.
''To diversify our trade … to enhance our work for African continent and collabo go dey important'',im tok
White House release a list of roughly 100 kontris and di tariff rates wey US go impose on wetin Trump call "liberation day" for American pipo.
Trump add 34% to di existing 20% duties on all Chinese imports to US, to make am di highest rate globally.
In addition, Trump impose a 25% tariff on all foreign-made cars.
US dey expected to start to charge din10% tariffs on 5 April, while di higher duties for certain nations go start on 9 April.
African kontris like South Africa, Nigeria, and Kenya get long-standing trade relations wit US, and di new tariffs fit significantly affect existing economic ties.
Annabel Bishop, chief economist for Investec, one South Africa-based banking and investment firm, believe say di impact go dey "very negative".
But she tell BBC say di tariffs fit increase di current shift for Africa trading practices.
"What we go expect to see na greater trade wit di Global South, wia possible, [dia] e dey likely to see some switching in trade partners."
Di tariffs also come in as many African kontris already dey struggle wit di effects of US foreign aid cuts, wey dey provide health and humanitarian assistance to vulnerable nations.
Trump announce di aid freeze on im first day for office for January as part of a review on top US goment spending.
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