Lesotho’s Textile Industry Reels Despite U.S. Tariff Cut

The U.S. tariff reduction arrived after Lesotho textile industry experienced months of trade disruptions according to local officials and manufacturers. President Donald Trump implemented a 15% duty reduction on Lesotho exports after threatening to impose 50% duties but the existing uncertainty since April has already caused order cancellations and employment losses.
Afri-Expo Textiles founder Teboho Kobeli reported that U.S. orders used to represent 10% of his production volume which generated $1 million each year. The looming tariff threat led him to eliminate 200 positions which represented 40% of his total workforce. Trade Minister Mokhethi Shelile stated that 12,000 jobs remain endangered because competitors in Kenya benefit from lower tariffs.
The apparel sector which operates as Lesotho's biggest private employer depends on duty-free access to the U.S. market through the Africa Growth and Opportunity Act. The sector employs 40,000 workers who generate 90% of all manufacturing exports. The April layoffs of Matsoso Lepau and other workers remain hopeful about the potential job restoration through the tariff reduction.
Kobeli expresses cautious optimism about the situation because the lower tariff rate has led to new discussions with American buyers. The 15% tariff rate has enabled us to initiate new talks with American buyers according to Kobeli.