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yesterday

Lesotho’s Textile Sector Reels After U.S. Tariff Cut to 15%

Lesotho is negotiating a further tariff cut to 10% after the 15% rate failed to stop factory closures, triggering widespread job losses, infrastructure suspensions, cuts to health programs.

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

  • President Trump signed an executive order on July 31 reducing Lesotho’s proposed 50% tariff to 15% under his reciprocal tariff policy.
  • Lesotho’s textile industry, the country’s largest private employer with over 30,000 workers, has lost U.S. orders and closed factories like Ever Successful Textile in Maseru, where the workforce fell from 650 to 90 employees.
  • The government declared a state of disaster in July to reallocate funds toward youth employment and small business support as export revenues collapsed.
  • Cuts to U.S.-funded programs have halted infrastructure projects and halved antiretroviral supplies for HIV-positive patients such as factory worker Lieketseng Billy.
  • Trade Minister Mokhethi Shelile has sought talks with U.S. representatives to secure a deeper reduction to a 10% tariff for fairer competition with rivals like Kenya.