The recent reduction of U.S. tariffs on Lesotho’s exports from a threatened 50% to 15% has come too late to prevent widespread disruption in the country’s textile sector. The months of uncertainty before the decision triggered cancelled orders, halted investments, and massive job losses in Lesotho’s largest export industry.
How Did the U.S. Tariff Threat Impact Lesotho’s Garment Industry?
Lesotho, known for producing jeans and apparel for major U.S. brands like Levi’s and Walmart, was severely affected after the April announcement of a potential 50% tariff. Teboho Kobeli, founder and managing director of Afri-Expo Textiles, said the uncertainty forced his company to lay off 200 workers, 40% of its staff. “We were on the verge of building (our) American market,” he told Reuters. The U.S. previously accounted for about 10% of his output, worth roughly $1 million annually.
With President Trump’s recent executive order lowering the tariff to 15%, there’s cautious optimism, but much of the damage is already done. “Now with the 15%, we are starting to talk,” said Kobeli. “It’s not like we were affected alone.”
What’s at Stake for Lesotho’s Economy?
Trade Minister Mokhethi Shelile warned that nearly 12,000 jobs remain directly at risk. Lesotho’s garment industry employs around 40,000 people and contributes approximately 90% of the country’s manufacturing exports. Compared to regional competitors like Kenya and Eswatini, which secured a 10% tariff rate, Lesotho is now under pressure to remain competitive.
For people like Matsoso Lepau, a former worker at Leo Garments, the situation is personal. “I have a big problem because the money that I was making is not there anymore,” he said. He hopes the reduced tariff will help restore his job.
Lesotho’s access to U.S. markets through the African Growth and Opportunities Act remains crucial, but the recent turmoil underscores how fragile trade-dependent industries can be.
By Risper Akinyi