Maseru: A garment factory in Lesotho, known for producing Trump-branded golf shirts, is on the brink of closure following the imposition of significant US tariffs earlier this year. The southern African nation was hit with a 50% "reciprocal" tariff rate in April, announced by US President Donald Trump, which is higher than any other country.
According to BBC, despite the pause on these tariffs, President Trump has indicated that they will be reinstated on August 1 unless a new agreement is reached. The uncertainty surrounding the future of Lesotho's clothing industry has prompted the government to declare a national "state of disaster" to expedite job creation efforts.
Ms. Seleso, an embroiderer at Precious Garments for eight years, expressed concerns about job security, as workers have been informed that the firm may close "any time from now." In response to the tariff situation, employees are working only two weeks per month, resulting in reduced wages. Ms. Seleso is struggling to support her family and is appealing to the government to negotiate with the US for a resolution.
Meanwhile, Sam Mokhele, representing one of the unions with 150 workers at the factory, stated that while there is no immediate sign of closure, the possibility remains if circumstances do not improve. Across town, job seekers gather outside another shuttered garment factory, CGM. Puleng Selane, among them, has been job-hunting since March and relies on selling face masks to support her family.
Lesotho's exports to the US, once duty-free under the African Growth and Opportunity Act (Agoa), now face a 10% tax. The textile industry, previously a major private sector employer in Lesotho, is facing significant challenges, with 12,000 jobs directly impacted by the tariffs. Youth unemployment is alarmingly high, leading to criticism of the government's efforts to address the crisis.
Youth activist Tšolo Thakeli highlighted the lack of job opportunities and rampant corruption in the country. He criticized the government's promises, asserting that there is no tangible plan to tackle the issue. Trade Minister Mokhethi Shelile, however, maintained that the government is making efforts to resolve the problem, including shifting production focus to South Africa.
At the TZICC factory, operations have been suspended due to halted orders, leaving 1,000 employees without work for four months. The company awaits updates on Agoa and the tariff structure before making further decisions. Without Agoa, even a 10% tax poses challenges for reopening.
As government officials assure the public of ongoing efforts to resolve the situation, workers like Ms. Seleso and activists like Mr. Thakeli remain skeptical, seeing little hope for Lesotho's struggling workforce.