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yesterday

Lesotho Textile Factories Struggle Despite U.S. Tariff Cut

Industry leaders warn that the reduced 15% levy starting August 7 still leaves the textile sector uncompetitive against lower-tariff rivals.

Workers execute their duties at the Afri-Expo Textile Factory, which makes clothing for the U.S. market, on the outskirts of Maseru, the capital of Lesotho, July 9, 2025. REUTERS/Siyabonga Sishi/File Photo
A sewing machine is covered by a sheet inside the empty Tzicc clothing factory following the threat of U.S.-imposed tariffs in Maseru, Lesotho, Tuesday, July 22, 2025. (AP Photo/Bram Janssen)

Overview

  • An executive order signed July 31 replaces a threatened 50% duty with a 15% levy on exports to the U.S., effective August 7.
  • Ever Successful Textile cut its workforce from 650 to 90 by late July, while Tzicc sent home most of its 1,300 employees.
  • U.S.-funded school construction has stalled midway and antiretroviral supplies for laid-off workers have been halved.
  • Lesotho’s government declared a state of disaster in July to free funds for youth employment and small business relief.
  • Trade Minister Mokhethi Shelile has asked U.S. officials to reduce the rate to 10% and is pursuing export diversification under AfCFTA and EU partnerships.