US Tariffs Threaten Lesotho’s Garment Industry: Factories Shut, Jobs Lost, Hope Fades
Maseru, Lesotho – As new tariffs imposed by the United States loom over Lesotho’s once-thriving textile sector, the small southern African kingdom finds itself in a deepening economic crisis. Thousands of workers in Lesotho’s garment factories—many of them women—face job cuts, wage losses, and growing uncertainty over their livelihoods, as the country’s largest private employer teeters on collapse.
At the heart of the crisis are the “reciprocal” US import tariffs, first announced by former President Donald Trump in April. Lesotho, ironically one of the poorest nations in the world, was slapped with a 50% tariff rate, the highest globally. Though temporarily suspended, Trump has signaled the tariffs will reimpose on August 1, unless a trade deal is reached.
For workers like Aletta Seleso, the impact is already life-altering.
“We don’t know how we survive this one. We are going to die,” she tells the BBC with despair outside the Precious Garments factory, where she has worked as an embroiderer for nearly a decade.
Seleso, a mother and breadwinner to several dependents, now works only two weeks per month and earns half her usual $160 monthly salary. Her story is echoed by thousands across Lesotho’s industrial hubs.
Lesotho’s Textile Sector: From AGOA-Fueled Boom to Near Collapse
For years, Lesotho’s garment industry thrived under the African Growth and Opportunity Act (AGOA), a US law enacted in 2000 allowing certain African countries duty-free access to American markets. Lesotho was dubbed “Africa’s denim capital”, producing garments for global giants like Levi’s, Wrangler, Walmart, and JC Penney.
At its peak, the sector employed around 50,000 workers. Today, that figure has dropped to 36,000, with 12,000 jobs directly affected by the new US tariffs, according to the government.
Precious Garments alone once employed 4,000 workers but now operates on a severely reduced scale. Another key player, TZICC, has laid off over 1,000 employees after losing orders from US buyers due to the tariff hike.
“Because of the pressure of the tariffs, our buyers gave us a deadline. We finished early—and now the factory is shut,” said Rahila Omar, a manager at TZICC.
Inside the dormant warehouse, hundreds of industrial sewing machines sit idle—silent symbols of Lesotho’s economic unraveling.
AGOA Undermined by Trump’s Tariffs
Until this year, Lesotho’s exports to the US were tariff-free under AGOA. The trade policy aimed to promote “trade, not aid” and stimulate job creation in developing countries. However, the country’s trade surplus with the US—exporting more than it imported—appears to have triggered Trump’s retaliatory action.
Though the 50% tariff has been paused, Lesotho’s exports are now subjected to a 10% duty, which still places undue strain on an economy already reeling from high unemployment.
“Even the 10% tax is unaffordable without AGOA. The US market was everything for us,” said Ms. Omar.
Daily Struggles and Desperate Hope
In Thetsane Industrial Area, desperate job seekers gather outside shuttered factories with nothing but water bottles in hand. Puleng Selane, a mother of three, sells medical face masks to survive, earning just enough to buy maize meal and paraffin.
“We often eat once a day… sometimes we sleep hungry,” she confides.
For workers who are still employed, like Ms. Seleso, the uncertainty is paralyzing. She now supports her child, her mother, and two orphaned relatives on half her income.
“They told us the factory can close any time,” she says.
Government Response: Too Little, Too Late?
Trade Minister Mokhethi Shelile insists that the government had already begun efforts to diversify exports, especially toward South Africa, even before the US tariffs were announced.
“Only 20% of the garment industry now supplies the US. We’re pivoting,” he told the BBC.
But critics call this response inadequate and untimely.
Tšolo Thakeli, a 31-year-old youth activist and qualified lawyer, accuses the government of corruption, nepotism, and failing to create tangible job opportunities. He was even arrested for posting a video questioning Prime Minister Sam Matekane’s claim that 70,000 jobs would be created in two weeks.
“There’s a serious state of hopelessness among the youth,” Thakeli says. “There are no jobs—only empty promises.”
Unemployment in Lesotho stands at 30%, with youth unemployment nearing 50%, a staggering figure for a population just over two million.
The Future of Lesotho’s Workforce at Stake
Despite the economic hardship, workers and unions are not giving up hope. Sam Mokhele, secretary general of a union representing workers at Precious Garments, said the company hasn’t officially announced closure—but it’s hanging by a thread.
“They said they may shut down if things don’t change,” he explained.
Ms. Seleso is now pleading with the government to engage US officials and secure a solution—be it through AGOA’s reinstatement or a new bilateral trade agreement.
“We just want to work. We want to feed our families. We’re not asking for much.”
A Nation in Waiting
As the August 1 deadline approaches, uncertainty looms over thousands of Lesotho’s factory workers. The garment industry was one of the few reliable sources of employment in the country. Without it, the socio-economic consequences could be devastating.
Despite reassurances from the trade ministry, those on the ground—like Ms. Seleso, Ms. Selane, and Mr. Thakeli—see only hardship, hunger, and unfulfilled promises.
Final Thoughts
Lesotho’s fragile economy, once buoyed by AGOA, is now at a crossroads. The looming reimposition of US tariffs threatens not just factories and jobs, but the very dignity of a nation striving for economic independence. While the government scrambles for solutions and foreign buyers weigh their options, time is running out for the thousands of families that rely on Lesotho’s textiles industry.