NEWS & POLITICS
Factory closures loom as tariff reductions fall short in Lesotho
Lesotho's textile industry is grappling with mounting challenges as factory closures and job losses loom, despite a recent U.S. tariff cut.
Noluthando Buthelezi
Former U.S. President Donald Trump's decision to slash duties on Lesotho's exports from 50% to 15% has failed to deliver the expected relief.
"It's a mixed feeling," Trade, Industry and Business Development Minister Mokhethi Shelile told Reuters in a telephone interview. "The sad part is that it is still not good enough."
Officials note that despite the tariff cuts, Lesotho's textile industry remains burdened by steep production costs and fierce regional competition. Last week, AP News reported that Tzicc—the country's largest clothing manufacturer—laid off the bulk of its 1,300 employees. The factory had been a key supplier of sportswear to major U.S. retailers, including JCPenney, Walmart, and Costco.
According to David Chen, chairperson of the Lesotho Textile Exporters, the US government's move to reduce tariffs has provided little relief to the struggling industry, as competitors like Kenya continue to benefit from lower tariffs.
"As a result, many factories will have to shut down," he said. "They had already been forced to lay off workers when the tariffs were first announced in April."
The Lesotho government says further talks with U.S. trade officials are essential to secure deeper tariff cuts. Trade Minister Mokhethi Shelile confirmed his department has engaged the U.S. embassy, urging a reduction to the minimum rate of 10 percent. Without it, he warned, the country risks losing one of its most lucrative industries—and with it, thousands more jobs.
