Lesotho Declares State of Disaster Amid U.S. Tariff Uncertainty and Surging Youth Unemployment
The government of Lesotho has declared a national state of disaster in response to soaring youth unemployment and deepening economic instability, a crisis amplified by trade uncertainty with the United States.
Deputy Prime Minister Nthomeng Majara announced the declaration this week, citing “high rates of youth unemployment and job losses,” which have pushed the textile-dependent economy to the brink.
The state of disaster will remain in effect until 30 June 2027, enabling the government to activate emergency powers under the Disaster Management Act.
Official figures show overall unemployment in Lesotho hovering around 30%, but among young people, it has surged to nearly 50%. The economic fallout, officials say, has been exacerbated by U.S. trade policy shifts including tariffs initially introduced by former President Donald Trump.
In April, Lesotho faced the highest U.S. tariff rate of any nation — 50% — when Trump unveiled a sweeping trade crackdown aimed at curbing the U.S. trade deficit.
Although the additional duty has since been suspended, a 10% baseline tariff remains in place, triggering a collapse in buyer confidence and threatening tens of thousands of jobs.
“We are in crisis,” warned Trade Minister Mokhethi Shelile, speaking to South Africa’s Moneyweb last month. “US buyers are holding back orders because they don’t know what will happen next.”
Lesotho had previously been a top beneficiary of the African Growth and Opportunity Act (Agoa) — a landmark U.S. trade program offering duty-free access to American markets for eligible sub-Saharan countries.
The small, landlocked kingdom exported nearly $240 million worth of goods to the U.S. in 2024, primarily textiles and apparel.
But the uncertainty over Agoa’s renewal, which expires at the end of September, has placed an estimated 40,000 jobs at risk, according to government estimates cited by AFP. For a country of just over 2 million people, this represents a potentially devastating economic shock.
Lesotho’s troubles have been compounded by the termination of U.S. development aid programs, including the withdrawal of funding from the U.S. Agency for International Development (USAID).
The country was also a recipient of the President’s Emergency Plan for AIDS Relief (PEPFAR) — a cornerstone health initiative since 2003 that supported HIV/AIDS treatment and prevention.
Compared to other African nations grappling with global economic headwinds, Lesotho’s plight is unique in its dependence on a single export sector and narrow trade corridors.
With textile factories already slowing production, and youth unemployment nearing crisis levels, the country’s leadership has turned to disaster-level measures in hopes of averting a full-scale economic collapse.
The government has yet to confirm whether it will seek international assistance, but calls are growing louder for a coordinated response from regional partners and donors.
