The 50% tariff rate imposed by the United States on imports from Lesotho, currently suspended for a period of three months, is beginning to severely impact the nation’s textile exports. Over 5,000 jobs in this sector are at risk, and one of Lesotho’s leading textile firms, Lesotho Precious Garments (PTY) Ltd, along with its subsidiary Maseru E-Textiles (PTY) Ltd, is reportedly preparing to shut down their operations, as stated by a local newspaper.
These companies have reached out to the United Textiles Employees Union (UNITE) to discuss the possibility of a three-month closure.
Although the tariff suspension is in effect, US buyers have halted their orders, choosing to wait for a clear resolution. During this suspension, buyers are currently facing a 10% baseline tariff.
Lesotho has not yet been able to negotiate with the United States regarding the tariff situation, as all attempts have encountered obstacles.
According to UNITE’s deputy general secretary Potloloane Monare, both factories are hoping that this temporary suspension will provide the government with an opportunity to renegotiate the unfavorable trade terms with the US administration.
Other smaller manufacturers, such as TZICC Clothing Manufacturers and Lucky Manufacturing, which rely on subcontracted work orders, will also be forced to shut down if Precious Garments goes out of business, Monare warned.
The 50% tariff introduced by President Trump was calculated using a formula that considers the trade deficit between countries and the total value of their imports from the United States. Consequently, smaller economies like Lesotho, which import relatively little from the United States, have been disproportionately affected.