Lesotho Announces Two-Year Disaster Due to 30 Percent Jobless Rate

(MENAFN) Lesotho has announced a two-year state of disaster in response to soaring unemployment triggered by a steep U.S. tariff introduced under President Donald Trump.

Deputy Prime Minister Nthomeng Majara declared the emergency after the national unemployment rate surged to 30%, prompting widespread job losses across key sectors.

The disaster declaration will stay in force until June 30, 2027, and is intended to implement all necessary measures to mitigate the impact of rising unemployment, Majara said.

With a population of around 2.3 million, Lesotho is now grappling with a youth unemployment rate nearing 50%, based on official figures.

The economic crisis follows Trump's controversial move in April to implement a 50% tariff on imports from Lesotho as part of what he termed “reciprocal tariffs” on dozens of countries. In a March statement regarding foreign aid transparency funded by USAID, Trump said of Lesotho: “a country nobody has ever heard of.”

The tariff made Lesotho the most heavily targeted nation in the policy rollout. While the measure was eventually suspended, its economic fallout has been severe. Lesotho's economy—heavily reliant on trade with the United States—has been hit hard, especially as the U.S. is the country’s second-largest export destination.

Data from the Observatory of Economic Complexity (OEC) shows Lesotho exported $228 million in goods to the U.S. in 2023, while importing less than $8 million in return. The U.S. market accounts for over 10% of Lesotho’s GDP.

Lesotho, which conducts more than 80% of its foreign trade with neighboring South Africa, has seen its textile industry—the backbone of its exports to the U.S.—battered by the tariff’s aftershocks. The sector employs about 40,000 workers, many of whom have been affected by the downturn.

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