Events in the recent weeks have been concerning in as far as the discourse regarding United States (US) policy pronouncements affecting Lesotho is concerned. And when the world thought hegemonism belonged to the bygones, the current “them vs us” crusade and the identification of ‘scapegoats’ across the globe for coming up with policies that either punish or exclude the said “enemies” says otherwise. This is used to rally citizens behind certain policies and decisions that would otherwise not get any traction.
In the case of Lesotho, some might remember the infamous incident where United States President Donald Trump referred to the kingdom as a country that “nobody has ever heard of”. This was followed by a 50% tariff on all imports from Lesotho. Although the said tariff has now been “temporarily” suspended, one sees more reason for Lesotho leadership to increasingly look East than the West.
The notion of “America first” evokes memories of nationalist and exclusionary policies, raising questions about the implications for democracy and global cooperation. It appears that the obtaining arrogance and naivety stem from a lack of historical awareness or a disregard for the lessons learned from past conflicts.
It is in this context where China and its vision of a “shared future” is a more sustainable and attractive proposition and approach to global relations, one that emphasizes cooperation and mutual benefit rather than division and isolation. This perspective resonates with many nations, including Lesotho, as they navigate the complexities of a rapidly changing world.
It is imperative to engage in dialogue and promote understanding, ensuring that the mistakes of the past are not repeated. The fight against hegemonism remains relevant, and it is up to current and future generations to uphold the values of democracy, inclusivity, and solidarity.
Trump’s economic policies draw opposition across the globe
The rationale behind these tariffs is to protect American manufacturing and reduce the trade deficit. However, the implementation of the policies has proven to be more about political rhetoric than sound economic principles. For instance, it is clear that the United States does not have the capacity to produce enough for its own consumption in various sectors. The reasons for this are varied. One of them is that they do not have adequate people with the requisite skills. The costs of production are also too high. Which is why they need countries like Lesotho and China whose industries can produce at costs that are much less.
The imposition can have a profound impact on global trade dynamics. Tariffs increase the cost of imported goods, which can lead to higher prices for consumers and businesses that rely on those imports. In the case of Trump’s tariffs, the immediate effect has been a rise in prices for a variety of goods, from electronics to agricultural products. However, the long-term consequences will be even more significant, as countries have begun to retaliate with their own tariffs, leading to a tit-for-tat trade war that has disrupted established supply chains and created uncertainty in the global market.
For smaller countries, the impact of these tariffs can be particularly severe. Many of these nations rely heavily on exports to larger economies, and any disruption in trade can have catastrophic effects on their economies. Lesotho, a small landlocked country in Southern Africa, serves as a poignant example of how Trump’s economic policies have had detrimental effects on nations that are already vulnerable. The Kingdom of Lesotho heavily relies on textile exports to the United States. The textile sector is Lesotho’s second biggest employer with over 31 000 jobs. This has been a constant employer because of the United States’ African Growth and Opportunity Act (AGOA), a United States government legislation which has enabled eligible Sub-Saharan Africa countries to export goods to the United States market tariff free since 2000.
However, the imposition of tariffs by the Trump administration has the potential of disrupting this delicate balance in the United States itself. So bad is the fallout from these tariffs that according to former United States Treasury Secretary, Larry Summers, a family of four should expect an estimated US$300,000 just after an hour of “Presidential rhetoric”.
“This action has taken $3 trillion off the stock market as a consequence of an hour of rhetoric. The stock market reflects only part of the economy. So, if you took the cumulative loss, extrapolated from the stock market, it’s closer to $30 trillion. That’s more damage than any economic policy pursued by any president in the last—probably in American history,” Summers said in a CNN interview.
And it’s absurd that Trump justifies the tariffs saying he wants to address America’s trade deficit. Trade deficits are caused by governments’ profligacy. They occur when governments spend more than they produce and/or export. And Colombia University professor, Jeffrey Sachs, agrees with this notion. “America’s trade deficit is a measure of the profligacy of America’s corporate ruling class, more specifically the result of chronically large budget deficits resulting from tax cuts for the rich combined with trillions of dollars wasted on useless wars. The deficits are not the perfidy of Canada, Mexico, and other countries that sell more to the United States than the United States sells to them,” Professor Sachs said in his article titled: Trump’s Absurd Trade Policies Will Impoverish Americans and Harm the World.
Time to look for certainty and practicality in partnership
In the modern day, life is not always about winning but also about the process. Of course, humanity has always been given to the animalistic desire to win; at all costs. But that has changed. Jungle laws no longer work. We now must consider the methods and effects above winning.
Yet recent hegemonistic ideals by the United States have shown a worrying arrogance and baffling naivety. It appears that President Trump is more about spectacle than sound policy. His tenure has been marked by lies and obsession with winning at whatever cost.
And the danger that the United States might not have considered is the real possibility of the world moving on without them. As Singaporean publication, Lianhe Zaobao, predicted, in the future, a “trade globalization with the United States in a secondary position” or a “semi-globalization without the United States” process might form.
While the Trump administration has been pushing for technology decoupling and exclusion of China, the reality is that China is a more partner. It is better placed to win this war. Among many other factors that prove that China, and indeed the world, can survive without the US is that it already has the infrastructure. In an article titled: Why the “ABC” strategy will fail, Japan’s Nikkei Asian Review contended saying China’s domination of nearly 90% of the world’s rare earth element refining, as well as about 60% of lithium, 68% of cobalt and 90% of natural graphite refining, made it the world’s leading supplier of processed materials for nearly every industry.
“Rare earth elements are essential for semiconductors, electric vehicle motors, wind turbines and missile guidance systems. Lithium, cobalt and nickel are essential for computers, cell phones, energy storage and aerospace applications. Graphite is an essential component of lithium-ion batteries. Even if Western companies decide to move to Southeast Asia or elsewhere, they are still tied to China’s supply chain”.
And speaking of China, in a recent media statement, the Chinese Foreign Ministry called the tariffs “extortionate” and said they would not make any difference apart of proving that the United States was weaponizing tariffs “to coerce and bully other”.
“China does not want to fight those wars but neither are we afraid of them. If the United States continues to play this numbers game with tariffs, it will simply be ignored. But if the U.S. continues to inflict actual damage on China’s rights and interests, China will respond with resolute countermeasures and will stand our ground to the end”.
Opportunity to reassess international alliances
Lesotho’s evolving geopolitical landscape presents a unique opportunity for the nation to reassess its international alliances. The recent animosity as evidenced by the tariffs from the United States must serve as a catalyst for Lesotho to identify and strengthen its relationships with countries that are more aligned with its developmental goals and values.
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The recent establishment of the Confucius Institute can mark the beginning of a significant shift towards collaboration with China, reflecting a broader trend of countries seeking partnerships that prioritize sustainable development and technological advancement. This initiative not only highlights the importance of agricultural innovation for Lesotho’s economy but also signals a commitment to fostering educational ties that can lead to long-term benefits.
Lesotho has already been a beneficiary of countless projects and programmes funded by China. The Chinese medical teams, recurrent food donations come to mind. China has long opened its arms to Lesotho and other countries for further cooperation through preferential policies, inter alia the zero-tariff treatments for 100 percent tariff lines since 1 December, 2024. What Lesotho simply needs to do is to get its priorities right and initiate the kind of projects that create employment for its population. Lesotho salaries are low and that makes it cheaper to operate production facilities in the country. We just need leadership that is willing to go the extra mile and start thinking big. A leadership that is willing to plan beyond its own tenure.
As global power dynamics continue to evolve, Lesotho has the chance to pivot towards partnerships that may offer more immediate and relevant support. By embracing this moment, the country can cultivate relationships that are not only beneficial in the short term but also sustainable in the long run, ultimately enhancing its resilience in an increasingly complex international arena.
Addressing guests at the embassy on the night of the launch of the institute, Lu Hui, the Chargé d’Affaires of the Embassy of the People’s Republic of China in Lesotho, said the Institute was one of the deliverables of Prime Minister Sam Matekane’s visit to China last September.
This is where the focus and effort should be directed, collaboration and cooperation instead of exclusion.
In the realm of global economics, the policies and pronouncements of influential leaders can have far-reaching consequences. While the Trump administration’s approach has often framed its policies as means to protect American jobs and industries, the reality has been far more complex and, in many cases, detrimental to both his country and other smaller nations.
It could be high time that we indeed consider the “semi-globalization without the US” as prescribed by Lianhe Zaobao.
