Reduction of US Tariffs Does Not Save Lesotho's Textile Industry

• Lesotho received a reduction of the export tariff to the US to 15%.
• The textile industry of the country is still facing the threat of factory closures.
• The Lesotho Minister is calling for further reduction of tariffs for competitiveness.

Master, Lesotho. — The southern African country Lesotho received a reduction of the export tariff to the US from 50% to 15%, but its textile industry still faces significant challenges with massive factory closures, officials reported in a statement.

Despite the reduction, aggravated by President Donald Trump's tariffs, the textile sector of Lesotho believes that it remains in conditions of competitive disadvantage and continues to struggle with further factory closures and job losses.

In April, Trump announced a 50% tariff on imports from Lesotho, which became the highest among all countries.

Although the tariffs have been suspended, a significant increase in damage to the textile industry, which is the largest private employer in the country with over 30,000 workers, is expected.

Approximately 12,000 of these workers are employed in factories that export products to the US market, supplying American retail traders such as Levi's and Wrangler.

It is reported that the apparel manufacturer Tzicc has already laid off more than 1,300 of its workers, who produced and exported sportswear to American stores, including JCPenney, Walmart, and Costco.

David Chen, head of the association of textile exporters of Lesotho, stated that the reduction of tariffs does not guarantee substantial assistance for the industry, especially since their competitors have lower tariffs.

"Other countries with which we compete are already paying 10%, which undermines our level of competitiveness," said Chen, noting that Kenya is their largest competitor with a lower 10% tariff.

"As a result, many factories are forced to close," he added. "They have already been compelled to lay off workers when tariffs were first announced in April."

According to data from the US Trade Representative's Office, in 2024, the bilateral trade between the US and Lesotho amounted to $240.1 million. In addition to clothing, Lesotho also exports diamonds and other goods.

Classified by the World Bank as a country with lower middle income, nearly half of the 2.3 million population of Lesotho lives below the poverty line, and a quarter is unemployed.

The Minister of Trade, Industry and Business Development of Lesotho, Mokhethi Shelile, noted that a number of meetings with US representatives have led to a reduction in tariffs, but more needs to be done for further reductions.

"We remain committed to making efforts to achieve further reductions to a minimum tariff level of 10%, which is important for our textile sector to effectively compete in the US market," he said. "I have already engaged with US officials regarding further negotiations."

Lesotho, a southern African republic, is also suffering after Trump's announcement of a 30% tariff for the country, which is expected to significantly impact its agricultural sector and industry.

Tags: Economy