After the Trump administration’s threat of 50% import responsibility on Lesotho, orders have dried up and production lines have shut down
- New orders have plummeted at garment factories after the threat of a 50% US tariff on Lesotho and production lines have shut down.
- Thousands of workers were despatched dwelling, with factory closures anticipated to final as a minimum three months.
- Executive has but to provide concrete give a take to, whereas unions warn as many as 20,000 jobs would possibly maybe maybe maybe be at threat.
On 2 April, Jane*, a worker at Leo Attire clothing factory in Lesotho was as soon as despatched dwelling. She is one in all many workers left sitting at dwelling as Lesotho faces a doable 50% tariff hike from the US.
Till the Trump administration presented a 10% tariff, Lesotho exported responsibility free to the US below the African Boost and Opportunity Act (AGOA). An additional 40% tariff was as soon as suspended, pending negotiations. However as US merchants weigh the possibility of an imminent hefty tariff, fresh orders have dried up, forcing many garment factories in Lesotho to suspend production lines.
“Firms that we met are planning a three-month closure, but if there’s no change by September, they may pull out completely,” warns United Textile Workers Union (UNITE) secretary-frequent Solong Senohe.
“If the tariffs were only 10%, they say they would have no problem staying in Lesotho and their buyers would not have a problem of placing orders. Now Lesotho has a hanging 50% tariff, and no one knows when it will be enforced.”
When Senohe spoke to GroundUp, he had appropriate attain from a meeting with Lesotho Precious Attire, who suggested him no fresh orders had been positioned after the 50% tariff announcement.
In a letter to UNITE, Precious Attire said that it’s “facing a great shortage of orders”. Identical letters were issued final month by TZICC Clothing Producers and Maseru-E-Textile, asking for conferences with UNITE over imminent layoffs.
Primarily basically based on Senohe: “The entire industry is affected … I recently spoke with Nien Hsing International management, and they said that by the end of July, all their American orders would be finished.”
“80% of our clothing exports go to the US, while only 20% go to South Africa,” mentioned Senohe.
The nation already faces horrible unemployment. A 2024 Lesotho Labour Pressure Belief found that 39% of childhood inclined 15-35 are unemployed.
The garment industry had reportedly already shed 16,000 jobs between March 2018 and March 2024, however with 34,151 jobs formally, it’s composed the 2nd-most attention-grabbing employer after the public sector. Senohe says the US tariffs have attach 20,000 jobs at threat.
On tv on Monday, High Minister Samuel Matekane mentioned US attend cuts and tariffs “have crippled industries that previously sustained thousands of jobs”.
Workers from Leo Attire, Boming Lai Teng and Precious Attire, speaking to GroundUp on condition of anonymity, suppose unionised workers were the main targets for the layoffs.
EFTU frequent secretary Tšepang Makakole mentioned they had bought experiences of discrimination in opposition to union members and had approached the Ministry of Labour and the Lesotho National Type Company for intervention.
Ideal week, workers at Maseru-E Textile started negotiating with administration, anxious half of-salaries whereas at dwelling or severance pay. They had viewed workers at completely different factories laid off without pay.
Shop steward Mathuso Tlale mentioned they became disquieted after they learned that one of the most most Chinese language employers were promoting fridges, microwaves and frequent household items. Maitumeleng Saoane, whose job is to chronicle hourly production on the factory, cited a 2023 instance when the owners of a factory vanished over a weekend, leaving unpaid wages.
On Friday, workers held a piece stoppage and someway walked out. On Monday, they found the gates locked and police autos guarding the premises.
Union leaders were allowed in to fulfill the factory owners. Afterwards, National Clothing Textile and Allied Workers Union secretary frequent Sam Mokhele suggested workers they would possibly maybe well must preserve dwelling for three months starting up July.
He mentioned the employers mentioned they had no longer budgeted for severance pay, however had agreed to pay those that had worked for the firm for two years or more, M1,000 (R1,000) per thirty days. Those with instant service would be given their annual hotfoot away rate.
South African orders
Kerasemese Rantlhokoane, human resources supervisor at Lucky Manufacturing, who also oversees operations at Leo Attire and Hong Da, suggested GroundUp that all three “cut, make, and trim” factories were difficult hit.
“We are now depending on South African orders, but if South Africa gets hit in the same way, we won’t survive,” he mentioned.
He mentioned even with reduced operations, factory owners must composed pay rent, utilities, and wages. “That’s why some employers vanish or skip paying salaries for months.”
He mentioned the owner who equipped Leo Attire in February final one year “is working hard to find new markets … But if it does close, workers will be paid their terminal benefits.”
Chinese language group promoting belongings were decrease-level group who rotate in and out, Rantlhokoane mentioned.
Deputy president of the Lesotho Textile Exporters Association Ricky Chang, who will most certainly be a director of Nien Hsing Textiles, mentioned US importers are waiting to ogle if any substitute agreement will most certainly be reached and at what tariff level. Nien Hsing Textiles produces Levi’s denims in Lesotho.
If the pudgy 50% tariff is implemented, Chang mentioned, the factories will halt or switch to fully different countries. He mentioned some factories have already planned for this and are in dialogue with substitute unions.
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“Lesotho’s textile sector will need the government to act quickly and achieve good results as soon as possible with its US counterparts.”
Entice authorities
In a letter on 5 Might also to High Minister Matekane, UNITE mentioned, “Thousands of Basotho workers are facing three months lay-off without pay”. The union referred to as for discussions with authorities on how to subsidise workers to mitigate their pickle.
On Wednesday, union representatives met Minister of Alternate Mokhethi Shelile and Minister of Labour and Employment Tšeliso Mokhosi.
UNITE deputy secretary frequent Potloloane Monare shared a advise on the meeting. The advise mentioned the ministers had held digital conferences with US officers.
“A final decision on the tariffs will be made by July 8, 2025 … But it looks likely that a 10% tariff will be applied to all African countries.”
The advise mentioned the authorities mentioned it lacked the resources to invent financial give a take to for workers despatched dwelling and would assess alternatives.
Meanwhile, hundreds of workers like Jane will most certainly be despatched dwelling when factories total existing orders. Jane can customarily pay her bills. She is weighing up immigrating to Newcastle.
“I don’t want to go illegally, but I’m running out of options,” she mentioned. She has four children to give a take to.
* no longer her real name
