Mokhethi Shelile has said garment exports are no longer viable under current conditions as the country seeks new partners in Africa and Europe

The Kingdom of Lesotho is actively pivoting away from the US as a key export destination due to punitive tariffs and shifting buyer behavior, the country's Minister of Trade, Industry and Small Business, Mokhethi Shelile, has said.

Speaking to RT, he explained that the landlocked southern African state is seeking new trade partners across Africa and Europe, citing challenges tied to turnaround times and increased near-shoring by American buyers. "We're already moving away from the US market," the minister added.

According to the minister, nearly 20% of Lesotho's garment exports are destined for the US market. Although recent negotiations brought the tariffs down to 15%, Shelile explained that it still renders Lesotho's garments uncompetitive. "Effectively, there is no difference between 50% and 15% for the garment industry," he said. "The margins are very small."

Lesotho is now intensifying efforts to expand exports within the Southern African Customs Union (SACU), which includes South Africa, Namibia, Botswana, and Eswatini, and is exploring new deals in Europe and under the African Continental Free Trade Area (AfCFTA), he added.

Despite the US being Lesotho's second-largest trading partner, the minister emphasized the urgency of diversification, both in destination markets and in sectors. "We are moving to other markets," the minister said, adding that the government is also transitioning toward industries like automotive components that are labor-intensive but not textile-based.

While Shelile acknowledged that the tariff reduction from 50% to 15% was a diplomatic achievement, he stressed that it still falls short. "People are really happy about the work... but it's not good enough," he said. If the tariff were set at 10%, it would make all the difference and Lesotho would be on the same footing as our competitors, Shelile concluded.

In April, the US imposed new reciprocal tariffs on imports from nearly 90 countries, affecting 20 African nations. South Africa, and the Democratic Republic of the Congo faced tariffs of 30%, and 11% respectively, while Lesotho was initially hit with the highest rate, at 50%.

US President Donald Trump later signed an executive order revising the rates. Starting next Thursday, Lesotho's rate will be 15% and Zimbabwe's will be 15%, below the previously announced 18%.

(RT.com)