Maseru: A garment factory in Lesotho, which has produced Trump-branded golf shirts, is facing potential closure due to significant import tariffs imposed by the U.S. government earlier this year. The small southern African kingdom was subjected to "reciprocal" tariffs of 50%—a rate higher than any other country—announced by U.S. President Donald Trump in April. Although these tariffs have been temporarily paused, Trump has indicated they will be reinstated this Friday unless a separate agreement is reached.
According to the BBC, the uncertainty over the future of Lesotho's clothing industry was one factor prompting the country to declare a national "state of disaster" earlier this month to expedite job creation. Ms. Seleso, an embroiderer at Precious Garments factory for eight years, expressed her concerns about the potential closure of the company, which was announced after the tariff implementation in April. Workers have been informed that they might lose their jobs if the situation does not improve, leading to reduced work schedules and pay.
The BBC has reached out to Precious Garments for comment but has yet to receive a response. Meanwhile, Sam Mokhele, secretary general of one of the unions representing 150 workers at the factory, confirmed that although the company has not indicated an imminent shutdown, it remains a possibility if circumstances do not change. Ms. Seleso is calling on the government to engage with the U.S. and seek a resolution to the tariff issue.
The impact of the tariffs is evident beyond Precious Garments. In Maseru's Thetsane industrial area, job seekers gather outside the closed CGM factory, hoping for employment opportunities amid rumors of its possible reopening. Among them is Puleng Selane, who has been job-hunting since March and currently relies on selling medical masks to make ends meet. The tariffs have also affected Lesotho's exports to the U.S., which are now subject to a 10% tax, despite previously enjoying duty-free access under the African Growth and Opportunity Act (AGOA).
The textile and garment industry has been Lesotho's largest private sector employer, providing up to 50,000 jobs at its peak. However, the number of jobs has dwindled to around 36,000, with 12,000 directly impacted by the U.S. tariffs. The industry's success, bolstered by AGOA, led to a trade surplus with the U.S., prompting the imposition of high tariffs that threaten the country's economic stability.
Lesotho faces broader challenges with a 30% unemployment rate, which rises to nearly 50% among the youth. Youth activist Tšolo Thakeli highlights the lack of job opportunities and attributes the situation to nepotism and corruption. Despite government assurances of efforts to address the issue, including shifting production to South Africa, skepticism remains among workers and activists.
Trade Minister Mokhethi Shelile insists the government is working on solutions, acknowledging the difficulties presented by the U.S. market. However, for factories like TZICC, which has halted operations due to the tariff uncertainty, the future remains uncertain. Rahila Omar, a manager at TZICC, notes the company is awaiting updates on AGOA and the tariff structure before making further decisions.
Despite government promises, for workers like Ms. Seleso and activists like Mr. Thakeli, the situation remains dire, with many feeling the weight of a despondent and hopeless workforce.