A prominent economist warns that a 50% reciprocal trade tariff proposed by former President Trump would devastate the economy of Lesotho, a small, landlocked kingdom in Southern Africa. The tariff, which represents the highest levy imposed by the U.S., is predicted to disproportionately affect Lesotho's textile industry, a crucial employer in the nation.
The economist argues that Lesotho, heavily reliant on exports to the U.S., lacks the economic resilience to withstand such a significant trade barrier. The proposed tariff would make Lesotho's goods significantly more expensive, reducing their competitiveness in the American market. This, in turn, could lead to factory closures, widespread job losses, and increased poverty within Lesotho.
Critics of the tariff also point out the potential for unintended consequences. Disrupting Lesotho's economy could destabilize the region, potentially leading to increased migration and security challenges. The debate highlights the complex interplay between international trade policies and their impact on developing nations.
Economist: Trump Tariff Threatens Lesotho's Economy
A proposed 50% tariff on goods from Lesotho could severely damage the small African kingdom's economy, according to a leading economist. The tariff, the highest levied by the U.S., would disproportionately impact Lesotho's textile industry, a vital source of employment. Experts warn that the trade barrier could lead to job losses and economic instability in the already vulnerable nation. The potential consequences highlight the ripple effects of international trade policies.
Source: Read the original article at NBC