King Letsie III Warns of Job Losses and Economic Impact from Potential US Aid and Trade Cuts

Lesotho’s Head of State, King Letsie III, has expressed serious concerns over the potential consequences of United States President Donald Trump’s proposed cuts to foreign aid and trade agreements. In an interview with Agence France-Presse (AFP) ahead of a European trip on Wednesday, King Letsie III warned that the country stands to lose up to 40,000 jobs if the U.S. follows through on its plan to cancel a trade pact that grants Lesotho duty-free access to the American market.

Lesotho’s economy is heavily dependent on exports and foreign aid, with a $2 billion gross domestic product (GDP) that relies on international trade agreements and support. King Letsie III emphasized the severity of the situation, noting that the potential termination of the African Growth and Opportunity Act (AGOA) — a trade agreement allowing duty-free access to the U.S. market for African countries — would have an immediate and devastating impact on the nation’s economy.

“If AGOA is terminated, it will have an immediate impact on the economy because it could mean the loss of jobs for 30,000 to 40,000 people,” the King stated from his palace in Matsieng, about 45 kilometers (28 miles) from the capital, Maseru.

The loss of AGOA privileges would primarily affect Lesotho’s textile and apparel industries, which are major contributors to the country’s exports. Many factories in Lesotho rely on the preferential trade terms provided by AGOA to access the lucrative U.S. market, which supports thousands of jobs in the manufacturing sector.

The potential job losses are particularly concerning given the country’s high unemployment rate and dependence on these industries for income and economic stability. King Letsie III’s comments highlight the broader consequences of U.S. policy changes on smaller nations like Lesotho, which depend on international trade and aid to fuel their economic growth.

As Lesotho prepares to navigate these uncertainties, the King’s remarks underscore the importance of maintaining stable and beneficial trade relations for the country’s long-term prosperity. The government is now closely monitoring developments in Washington, hoping for a favorable outcome that will protect both jobs and economic stability.