Evading Trump's alleged "death sentence" for customs clearance in Lesotho.
In a move aimed at providing some relief, the Donald Trump administration reduced tariffs on textiles from Lesotho from a threatened 50% to 15%. However, this tariff reduction has not prevented significant economic harm or job losses in Lesotho's textile industry.
The textile industry is Lesotho’s most important private sector, accounting for about 90% of manufacturing exports and directly employing over 30,000 people. Many of these workers heavily depend on duty-free or low-tariff access to the U.S. market under AGOA (Africa Growth and Opportunity Act).
Initially, Trump's administration imposed a 50% tariff on Lesotho’s textiles in April 2025, causing immediate order cancellations and layoffs. Although tariffs were later lowered to 15% in a new executive order effective August 9, 2025, this relief was insufficient to restore competitiveness.
Job losses have already occurred. For instance, the Tzicc garment factory sent home most of its 1,300 workers amid the tariff uncertainty. Estimates warn that up to 12,000 jobs in the textile sector risk being lost due to this tariff environment.
Lesotho’s trade minister, Mokhethi Shelile, expressed a mixed response. While relieved at tariff reduction, he expressed concern that the 15% tariff still harms the industry and will lead to further job losses. The government is seeking further engagement with the U.S. and looking for alternative export markets to cushion the blow.
Additional indirect pressure comes from tariffs imposed on South Africa, Lesotho’s main trading partner, which may further strain Lesotho’s fragile economy.
The unemployment crisis in Lesotho is severe enough to warrant a state of emergency declaration. In early July, Lesotho declared a state of emergency due to rising unemployment.
The US has reduced tariffs on textiles from Lesotho from 50% to 15%, but the country's textile industry remains under severe threat from reduced U.S. market access. This has triggered factory closures and widespread unemployment in a country heavily reliant on textile exports.
Lesotho's products were previously exempt from import tariffs under the US program "Growth and Opportunities for Africa" (Agoa). However, the country is still negotiating with the US to extend the Agoa program. Finance Minister Matlanyane hopes for leniency in Washington and emphasizes the US's moral duty to accommodate smaller economies.
The union Unite warns of further job losses despite the tariff cut. The head of the textile union Unite, Malebohang Thai, states that even with the 15% tariff rate, Lesotho will continue to have serious problems due to competition with countries whose products are taxed at only 10%.
Lesotho's economy, with a GDP of just over two billion dollars (1.7 billion euros), is heavily dependent on textile exports, mostly to the US. The unemployment rate among young people in Lesotho is particularly high at 38%.
Finance Minister Retselisitsoe Matlanyane expressed relief at the tariff cut, but emphasized the need for ongoing dialogue with the US to ensure the stability of Lesotho's textile industry. The government in Maseru welcomes the tariff cut, but acknowledges the ongoing challenges facing the industry.
Despite the challenges, Lesotho remains hopeful for a positive resolution to the trade issues with the US. The government and industry leaders are working together to find solutions and secure the future of Lesotho's textile industry.
- The reduction of tariffs on textiles from Lesotho by the Donald Trump administration has not alleviated the severe threat to the country's textile industry, as the current 15% tariff rate remains detrimental, causing continued job losses and factory closures.
- As Lesotho's economy heavily depends on the textile industry, accounting for about 90% of manufacturing exports and directly employing over 30,000 people, the ongoing economic harm triggered by tariffs poses a significant challenge for the country's finance, business, politics, and general-news sectors.
