US EditionNews24 | Lesotho declares state of disaster over mass unemployment as US tariffs devastate economy
LESOTHO, JUL 8 – Lesotho faces nearly 50% youth unemployment and risks losing 40,000 jobs due to US tariffs and uncertainty over the African Growth and Opportunity Act renewal, officials said.
- This week, Lesotho announced a national disaster in response to rising youth unemployment and extensive job cuts linked to the uncertainty over newly proposed U.S. tariffs.
- This declaration follows U.S. President Donald Trump's April announcement imposing a 50% tariff on Lesotho’s exports, aiming to reduce the U.S. trade deficit.
- Lesotho's textile industry, which provides employment to around 40,000 people and constitutes the vast majority of the country's manufacturing export revenue, has faced widespread layoffs and canceled orders amid uncertainty over US tariff policies.
- Factory owner Teboho Kobeli pointed to the empty factory floor, noting the absence of workers, while former employee Limpho Lefalatsa, who lost her job after 12 years, expressed her disbelief and frustration over the situation.
- The disaster declaration enables the government to take measures to minimize economic harm, but risks remain as uncertainty threatens up to 40,000 jobs if preferential trade terms are not restored.
12 Articles
12 Articles
Lesotho declares state of disaster due to rising unemployment amid US tariffs
Deputy Prime Minister Nthomeng Majara announced the move amid an unemployment rate that has reached 30 per cent, with widespread job losses impacting the country’s economy, Anadolu Ajansi (AA) reported. The disaster declaration, which mandates taking all necessary measures to mitigate the unemployment crisis, will remain in effect until June 30, 2027. © New Straits Times Press (M) Bhd
Lesto was among the countries that suffered the highest rates in the United States, reaching a value of about 50% in April, although these have been suspended since then.
Economic Shockwave: Lesotho's Textile Crisis Amid Trump Tariffs
The U.S. imposed a 50% tariff on Lesotho's exports, crippling its textile industry. Lesotho relied on the Africa Growth and Opportunities Act for exports, but factory shutdowns and mass layoffs have ensued. The tariffs sparked economic disaster and social distress, leaving many like Limpho Lefalatsa devastated.
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