Govt reacts to US tariff increase

The government has reassured Basotho that there is no need to panic following the recent tariff increase on clothing and textile goods by the United States.
The White House on Wednesday announced a new set of reciprocal tariffs targeting dozens of countries, including Lesotho. Among the most striking measures is a 50 percent tariff on imports from Lesotho — the highest rate imposed on any nation in the new tariff schedule.
The Minister of Trade, Industry, and Business Development, Mokhethi Shelile, yesterday revealed that Lesotho has spent USD 240 million on imported goods this year, far surpassing the revenue it receives from exports to the United States.
He further explained that 99 percent of Lesotho’s exports go to the US, while only one percent of U.S. goods are exported to Lesotho.
“By dividing this figure in half, the U.S. arrived at the decision to impose a 50 percent tariff on Lesotho’s goods,” Shelile told a press conference last night.
He warned that the tariff hike threatens jobs and, if it persists, could pose significant challenges for Lesotho’s workforce.
Shelile acknowledged that the government was caught off guard by the U.S decision to impose the tariffs. However, he emphasised that Lesotho has alternatives, including exploring new markets.
Meanwhile, the Minister of Finance and Development, Dr Retšelisitsoe Matlanyane, echoed the sentiment, saying there is no need for panic as the government has viable solutions.
“The government is confident that it has options that will lead to successful outcomes in navigating this issue,” she said.