Lesotho: textile industry hangs in the balance following new U.S. tariffs

In case it’s seemingly you’ll presumably well have ever purchased denims from well-identified American brands reminiscent of Levi’s or Wrangler, it’s seemingly that they had been produced in Lesotho, a dinky nation in southern Africa.

The textile industry is indispensable to Lesotho’s financial system, providing jobs for roughly 12,000 individuals and sending round 75% of its products to the United States.

Then again, this distress would possibly perchance presumably well switch following the 50% tariff imposed by U.S. President Donald Trump on imports from Lesotho.

Trump claims that Lesotho imposes a ninety nine% tariff on American items, a figure that the Lesotho govt disputes, stating they are blind to how the U.S. arrived at that number.

Officers didn’t repeat the genuine tariffs on U.S. products during a newest announcement.

As a consequence, workers are anxious about capability job losses, fearing that rising export bills will deter American customers.

Dinky business owner Palesa Makae cautioned that many businesses would possibly perchance presumably well shut down, stating, “If that happens, some of the women and men who work in those factories will be out of work.”

According to the Place of job of the U.S. Exchange Representative, bilateral substitute between the U.S. and Lesotho reached $240.1 million in 2024.

In addition to clothing, Lesotho also exports diamonds and heaps of other products.

The World Financial institution classifies Lesotho as a decrease-center-income nation, with virtually about half of its 2.3 million residents living below the poverty line and a quarter facing unemployment.

Lesotho’s Exchange Minister Mokhethi Shelile announced that the nation will peep new markets and leverage the Africa Continental Free Exchange Set to lift shut exports to more favorable destinations within Africa. “We are not going to die. We will diversify and explore other markets,” he affirmed.