African countries that faced some of the Trump administration’s highest reciprocal tariffs experienced a moment of relief Thursday with the suspension of tariffs, but new uncertainties weigh on key companies that ship clothing and textiles, vanilla and fruit to the United States.
Lesotho , Madagascar and South Africa were threatened with some of the highest tariffs under US President Donald Trump’s plan.
Lesotho, a tiny mountain kingdom, was stunned by the 50% tariffs that were due to take effect Wednesday before Mr. Trump announced a 90-day pause on the levies. It is the second-highest tariff rate after China.
“This will give us an opportunity to negotiate tariff reductions so that the playing field is level for everyone,” said Lesotho’s Minister of Trade and Industry, Mokhethi Shelile, in response to the suspension. “This is a serious problem for us, but we are tackling it head on.”
Many countries, such as Lesotho, had already sent trade delegations to Washington or were ready to negotiate, with some of their most important industries and tens of thousands of jobs depending on the outcome of these talks.
Lesotho manufactures American-branded clothing
Nearly half of Lesotho’s 30,000 garment and textile workers depend on jobs manufacturing clothing for American brands like Levi’s , Nike, Reebok , and others, which is exported to the United States. The garment and textile industry is the largest private employer in this country of just 2.3 million people.
Lesotho’s most pressing problem is that regional competitors like Kenya and Eswatini have been granted much lower tariffs on their exports—some as much as 40 percent lower. Officials have warned that this competitive disadvantage will likely lead to the closure of more than a dozen Lesotho factories and the loss of more than 12,000 jobs unless the country manages to significantly reduce its 50 percent tariff rate during the negotiations.
“The problem arises when countries like Eswatini benefit from a 10% tariff while we are hit with a 50% tariff. These are the very countries that are competing with us ,” Shelile said.
Lesotho’s garment industry has been bracing for the imposition of 50 percent tariffs this week, with some saying it was the worst period the sector has faced since the COVID-19 avian flu pandemic.
“I don’t quite understand what’s going on, but I heard on the radio that our jobs are at risk,” said Mareitumetse Lesia, a machine operator who was taking a lunch break during a nine-hour shift assembling Levi’s jeans at a factory. “I hope it’s not true. I know what it’s like to have nothing to eat . “
The world’s largest vanilla producer
In Madagascar , which produces 80% of the world’s vanilla , the industry felt better as soon as the tariff suspension was confirmed, said Georges Geeraerts, president of the Madagascar Vanilla Exporters Association. Madagascar had had to pay a 47% tariff on its exports to the United States.
But there were other complications. Exporters are now rushing to ship their vanilla to the United States—by far Madagascar’s largest market—in the hope that it will arrive while tariffs are still suspended. Cargo ships take 70 to 90 days to reach the United States from the Indian Ocean island, and exporters were unsure what tariffs might be imposed upon the product’s arrival, given the Trump administration’s abrupt policy changes.
“All our American customers have been asking us since this morning to load the vanilla onto the cargo ships so we can meet the deadlines ,” said one exporter, who spoke on condition of anonymity because he was not authorized to speak publicly about the orders.
25-year-old trade deal threatened with termination
The South African citrus industry said the initial 30 percent tariffs imposed on its country threatened 35,000 jobs and the economies of entire towns that rely on exporting oranges and other citrus fruits to the United States when they are not in season in North America.
The suspension of reciprocal tariffs has given South Africa’s main agricultural export “some breathing room ,” said Boisthoko Ntshabele, executive director of the Southern African Citrus Growers Association. But they also had to face a new reality: The first citrus fruits of the year from South Africa shipped to the United States this week will be taxed at 10 percent, a blanket tariff that the United States has kept in place.
South African citrus previously enjoyed duty-free access to the United States under the 25-year-old African Growth and Opportunity Act, which benefits dozens of African countries. Many fear the agreement will not be renewed when it expires in September. South African Trade Minister Parks Tau said it would be “very difficult” to retain AGOA given the Trump administration’s stance.
Mr. Ntshabele said South African citrus growers were urging that their products be exempt from tariffs, given that they worked in tandem with American farmers to supply fruit to American consumers at different times of the year.
“South African citrus growers do not directly threaten the jobs or incomes of citrus growers in California, Florida and Texas ,” Ntshabele said.
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