In response to new U.S. tariffs, Lesotho and South Africa have pledged to strengthen regional cohesion and safeguard the Southern African Customs Union (SACU) to counter global trade disruptions.
The commitment was made during the second session of the Bi-National Commission (BNC) held in Maseru, on April 22–23, 2025, co-chaired by Prime Minister Samuel Ntsokoane Matekane and South Africa’s President Cyril Ramaphosa.
The BNC, preceded by a Council of Ministers meeting on Tuesday, expressed deep concern over U.S. tariffs announced on April 2, 2025, which imposed a 30 percent rate on South African goods and a 50 percent rate on Lesotho’s exports to the U.S.
According to the BNC minutes, these tariffs, driven by U.S. concerns over trade deficits and perceived trade barriers, will impact key sectors such as agriculture, textiles, and industry, threatening jobs and economic growth in both nations.
The U.S. tariffs are part of a broader shift toward protectionist policies under the administration of President Donald Trump, who returned to office in January 2025.
These measures aim to address the U.S. trade deficit but have sparked global market volatility and raised concerns about the multilateral trading system (MTS), including principles like special and differential treatment and most-favored-nation status.
The tariffs follow other protectionist trends among G7 nations, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which critics argue disadvantages African exports.
Lesotho and South Africa reaffirmed their commitment to maintaining SACU’s Common External Tariff and protecting regional supply chains. They aim to build resilient value chains to shield against global economic shocks.
The BNC emphasised a long-term strategy to preserve the regional and continental market, which they view as more predictable and stable than global markets.
The commission warned that unilateral responses to U.S. tariffs by regional partners risk undermining SACU and the African Continental Free Trade Area (AfCFTA), a flagship African Union (AU) initiative launched in 2018 to create a single African market.
Citing the AU’s 31st Ordinary Summit in July 2024, the leaders stressed that partnerships with third parties, including the U.S., must not weaken AfCFTA or the AU’s vision for continental integration.
The BNC highlighted the risk of trade diversion, as countries affected by U.S. tariffs may flood African markets with redirected exports, potentially disrupting regional trade.
To counter this, the commission urged SACU and other African nations to coordinate responses, ensuring cohesion to protect regional industrial capabilities and markets.
“It is critical that African countries avoid fragmenting regional trade and supply chains as developed nations disrupt global trade,” the BNC minutes stated.
The commission noted that protectionist measures are not unique to the U.S. For example, CBAM and similar policies in G7 countries threaten the competitiveness of African exports by imposing additional costs on carbon-intensive goods.
These global shifts underscore the need for African nations to prioritize regional integration and economic resilience.
A communiqué released after the BNC stated: “The leaders reflected on the seismic shifts in global trade and their drastic impact on both economies. They called for solidarity among countries of the region, continent, and the Global South to safeguard economic stability.”
SACU, established in 1910 and modernized in 2002, is the world’s oldest customs union, comprising Botswana, Eswatini, Lesotho, Namibia, and South Africa. It facilitates duty-free trade among members and a common external tariff on imports.
AfCFTA, operational since 2021, aims to boost intra-African trade by reducing tariffs and non-tariff barriers across 54 countries, creating a market of 1.3 billion people. Both frameworks are central to Lesotho and South Africa’s economic strategies.
Ntsoaki Motaung is an award-winning health journalist from Lesotho, specializing in community health stories with a focus on sexual and reproductive health and rights, as well as HIV. She has contributed to platforms like “Be in the KNOW,” highlighting issues such as the exclusion of people with disabilities from HIV prevention efforts in Lesotho.
In addition to her journalism, Ntsoaki serves as the Country Coordinator for the Regional Media Action Plan Support Network (REMAPSEN). She is also a 2023 CPHIA Journalism Fellow.
