Lesotho declares state of emergency due to unemployment after US tariffs

The government of the South African country of Lesotho has declared a state of emergency following threats from US President Donald Trump to impose 50% duties on exports. This was reported by The Wall Street Journal on August 1.

The article says that the amount of tariffs proposed by the American leader is one of the highest in the world. Trump also, according to the WSJ, called Lesotho a country "that no one has ever heard of."

The garment industry is the largest private employer in Lesotho and accounts for a significant portion of the country's annual gross domestic product of $2.3 billion. The United States accounts for almost 20% of Lesotho's overseas sales, including products from brands such as Levi's and Reebok, as well as chains like Walmart. Now local clothing exporters are closing stores due to reduced orders.

"Clothing exporters from Lesotho are already closing their stores, preparing to reduce orders, while other countries with more diplomatic resources are rushing to conclude new trade deals with the White House," the newspaper reports.

Lesotho's Minister of Commerce, Moheti Shelile, explained to the newspaper that the introduction of a state of emergency in the country would allow funds to be quickly redirected to programs to combat youth unemployment and stimulate the economy. He added that a lobbying group with access to Trump's entourage had asked the government of Lesotho for $1.5 million for a campaign to reduce tariffs, but "they did not want to guarantee the results." Lesotho declined the offer.

In addition, it is clarified that Shell is negotiating with the office of the US Trade Representative, insisting on reducing tariffs.

Pauses have been set: will the United States postpone the resumption of the global trade war

What are the risks of Trump's tariffs for the global economy and will they affect Russia?

On July 31, US President Donald Trump imposed additional duties on imported goods from the European Union and more than 60 foreign countries. For goods from the EU with the current rate below 15%, the duty will be increased to this level, and if the specified threshold is exceeded, no additional rate will be introduced. The highest new duties were imposed on goods from Laos, Myanmar (40% each) and Syria (41%). Goods from countries not mentioned in the decree that have not concluded an agreement with the United States are subject to a duty of 10%.

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