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Lesotho’s Garment Industry Faces Collapse Amid US Tariffs

Maseru: A garment factory in Lesotho, known for producing Trump-branded golf shirts, is on the brink of closure due to hefty import tariffs imposed by the US government earlier this year. The tariffs, initially set at 50% and described as "reciprocal," were announced by US President Donald Trump in April, targeting Lesotho more than any other nation. Although currently paused, Trump has indicated that these tariffs will be reinstated on August 1 unless a new agreement is reached.

According to BBC, the uncertainty surrounding the future of the clothing industry has prompted Lesotho to declare a national "state of disaster" to expedite job creation efforts. The precarious situation is exemplified by workers like Ms. Seleso, an embroiderer at Precious Garments, who has been employed at the factory for eight years. She and her colleagues now work only two weeks a month, earning half their usual pay, making it increasingly challenging to support their families.

Despite these dire circumstances, the garment industry remains a crucial part of Lesotho's economy, employing around 36,000 people. However, the imposition of the 50% tariff—though on hold—has already impacted 12,000 jobs directly. Until recently, Lesotho benefited from the African Growth and Opportunity Act (Agoa), which allowed duty-free access to the US market, fostering economic growth and job creation in the country.

The textile sector's struggles have been further compounded by broader economic issues, with unemployment rates soaring to 30% and youth unemployment nearing 50%. Youth activist Tšolo Thakeli criticizes the government for failing to provide tangible solutions, accusing it of nepotism and corruption. In response, Trade Minister Mokhethi Shelile insists the government is actively seeking alternatives, such as shifting production towards the South African market, although only 20% of the garment industry currently serves the US.

As factories like TZICC, which previously thrived on US orders, face layoffs and operational halts, the uncertainty looms large. Rahila Omar, a manager at TZICC, highlights the challenges posed by the tariffs, noting that even a 10% tax under the current structure could render operations untenable without Agoa.

For the workers and job seekers in Lesotho, the promises of government intervention and potential market shifts offer little solace as they confront an uncertain future. The resilience of the garment industry and its workforce hangs precariously in the balance, awaiting crucial decisions on the international trade front.