Our land-locked neighbour, Lesotho, is staring down the barrel of 50% trade tariffs from the United States. Should these go ahead, the number one export from Lesotho will cease to function, with knock-on effects for South Africa. 80% of Lesotho’s clothing exports go to the US, and 20% to South Africa.
Back in April 2025, US President Donald Trump introduced a 40% tariff (on top of an existing 10% for all African nations) on Lesotho. Previously, Lesotho exported duty free to the US under the African Growth and Opportunity Act (AGOA).
Since then, many US-based buyers have ceased ordering from Lesotho, as they weigh up imminent tariff increases. As such, existing business has run out and no new orders have been placed. In turn, this is forcing many garment factories in Lesotho to suspend production lines till further notice …
LESOTHO TEXTILE FACTORIES
Popular South African brands like Jonsson Workwear take advantage of Lesotho’s textile manufacturing capacity. Anyone who’s purchased an item from the aforementioned will no doubt commend the quality workmanship coming from Lesotho. However, that may all change as the United Textile Employees Union (UNITE) warns of closures, reports GroundUp.
UNITE says as many as 20 000 jobs are at stake if the US’s 50% import tariff become a reality. A spokesperson says three-month suspensions are planned, but if there is no change by September, large-scale closures may follow. Furthermore, UNITE confirms that many garment manufacturers have not received any new orders since Trump’s 50% trade tariff announcement.
SECOND-LARGEST EMPLOYER
Sadly, for Lesotho, there is already nearly 40% youth unemployment (18-35). And with upwards of 35 000 registered jobs, textile manufacturing is still the second-largest employer in the country after public-sector work. The Prime Minister of Lesotho says, “US Aid cuts and tariff increases have crippled industries that previously sustained thousands of jobs.”
As of last month, the Lesotho textile industry is more or less surviving off South African orders only. However, with reduced operations, factory owners cannot pay rent, utilities, and wages for much longer. They are working hard to find new markets, but if they cannot, workers will have to be terminated permanently. It is understood a final decision on tariffs will be made next month, on Tuesday 8 July 2025.
ARE YOU SAD TO SEE OUR NEAREST NEIGHBOURS SUFFER?
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