Maseru: A garment factory in Lesotho, known for producing Trump-branded golf shirts, is on the brink of closure due to significant US tariffs imposed earlier this year. The small southern African kingdom has been hit with "reciprocal" tariffs of 50%, the highest rate for any country, announced by US President Donald Trump in April. These tariffs, although temporarily paused, are set to be reimposed on August 1 unless a separate deal is reached.
According to BBC, the uncertainty surrounding the future of Lesotho's clothing industry contributed to the country's declaration of a national "state of disaster" earlier this month. This move aims to expedite job creation in a region heavily reliant on its garment industry. Workers like Ms. Seleso, an embroiderer at Precious Garments for eight years, face uncertainty as they have been informed that the factory could close at any time due to the tariffs. In the interim, employees are working just two weeks a month, receiving half their usual pay, making it difficult for Seleso to support her family.
Sam Mokhele, secretary general of one of the unions representing 150 workers at Precious Garments, stated that while the company has not shown immediate signs of shutting down, closure remains a possibility if conditions do not improve. Seleso is urging the Lesotho government to engage with the US to find a solution to the tariff issue.
Elsewhere in Maseru, job seekers gather outside other garment factories, hoping for employment opportunities. Puleng Selane, a job seeker since March, has been struggling to support her family by selling medical face masks, with earnings barely sufficient for basic needs. Although the 50% tariff has been paused, Lesotho's exports to the US still face a 10% tax, contrasting with their previous duty-free status under the African Growth and Opportunity Act (Agoa).
Agoa, which allowed duty-free access to the US market, was instrumental in boosting Lesotho's textile industry, which employed up to 50,000 people at its peak. However, the recent tariffs have threatened the sector, with around 12,000 jobs directly affected. Despite past successes, Lesotho continues to grapple with high unemployment rates, particularly among youth, with figures reaching nearly 50%.
Youth activist Tšolo Thakeli criticizes the government for inadequate job creation efforts, citing issues of nepotism and corruption. He argues that Prime Minister Sam Matekane's promise to create 70,000 jobs lacks a concrete plan, while Trade Minister Mokhethi Shelile insists the government is working to resolve the issue by shifting production focus towards the South African market.
The situation remains precarious for many in Lesotho, including workers at factories like TZICC, which has halted operations due to tariff pressures. Rahila Omar, a manager at TZICC, explains that while the factory also supplies clothing to South African retailers, the income from these sales does not compare to earnings from the US market. The future of Lesotho's garment industry hangs in the balance as stakeholders await updates on Agoa and potential tariff revisions.