Lesotho’s Textile Industry Faces Crisis as U.S. Tariffs Threaten Over 5,000 Jobs

Lesotho’s once-thriving textile sector is on the brink of collapse, with over 5,000 jobs at risk, following the imposition of a 50% tariff on textile exports by the United States, announced by President Donald Trump in April 2025.

Two of the country’s largest textile manufacturers, Lesotho Precious Garments (PTY) Ltd and Maseru E-Textiles (PTY) Ltd, have begun formal consultations on a potential three-month shutdown, citing halted orders and mounting losses due to tariff uncertainty.

Industry leaders warn that if no resolution is found, these closures could become permanent—triggering a domino effect across Lesotho’s broader textile ecosystem.
The tariffs, temporarily suspended for three months to allow for diplomatic negotiations, have already prompted American buyers to freeze orders, paralyzing factory operations.

Despite urgent attempts by the Lesotho government to open talks, U.S. trade officials have yet to formally engage, leaving the country’s access to the African Growth and Opportunity Act (AGOA) in jeopardy.

“The impact of this tariff is catastrophic,” said Potloloane Monare, Deputy General Secretary of the United Textiles Employees Union (UNITE). “If Precious Garments shuts down, dozens of smaller suppliers will follow.”

Lesotho’s AGOA-backed access to the U.S. has been a pillar of its export economy since 2000, making it sub-Saharan Africa’s top garment exporter to the U.S. and sustaining tens of thousands of jobs—most held by women. The reintroduction of the 50% tariff could wipe out this hard-earned position in a matter of months.

Government officials, including Trade Minister Mokhethi Shelile, say they are exploring alternative markets and local consumption to offset U.S. losses. However, stakeholders stress that urgent negotiations with the U.S. are critical to prevent a full-scale industry collapse.

With factory floors quiet, workers anxious, and no resolution in sight, Lesotho’s textile future—and the livelihoods of thousands—hang in the balance.