Impact of Trump's Tariffs on Lesotho's Garment Industry

Since the imposition of global tariffs by President Donald Trump in April 2025, Lesotho's garment industry has faced significant challenges. The tariffs, initially set at 50% but later reduced to 15%, have severely impacted the country's economy, particularly affecting its textile workers. Lesotho, a landlocked nation with a population of approximately 2.3 million, has seen a decline in job opportunities, particularly for women who constitute a large portion of the workforce in this sector.

The Guardian

The tariffs were introduced as part of a broader trade strategy, which Trump claimed was aimed at addressing trade imbalances. In 2024, Lesotho exported $237 million worth of goods to the United States while importing only $2.8 million. The imposition of tariffs has led to a chilling effect on the economy, with the central bank revising its growth forecasts down to 1.1% and 0.9% for 2025 and 2026, respectively. A government survey indicated that 400 layoffs occurred across 12 out of 15 clothing companies exporting to the U.S., with many factories operating at reduced capacity.

The Guardian

Moleboheng Matsepe, a former employee of Fabletics, shared her struggles after losing her job, stating that she now earns as little as 50 maloti (£2.23) a week from occasional laundry work. Similarly, Mapuseletso Makhake expressed her distress over financial difficulties, struggling to afford basic necessities for her family. The garment industry, which once employed 50,000 people at its peak in 2004, now has about 36,000 workers, many of whom are still reliant on jobs that pay as low as 2,582 maloti (£115) a month.

The Guardian

Mokhethi Shelile, Lesotho's trade minister, criticized the tariffs, stating that the country was being treated like a "pariah state." He expressed hope for a three-year extension of the African Growth and Opportunity Act (Agoa), which provides tariff-free access to the U.S. market, but noted that the current 15% tariff still poses a challenge. Shelile emphasized the need to reduce tariffs to 10% to maintain competitiveness with other African nations like Eswatini, Ethiopia, and Kenya.

The Guardian

Critics of the tariff policy argue that it disproportionately affects vulnerable populations in Lesotho, particularly women who make up the majority of the garment workforce. The economic strain has led to increased unemployment and hardship, with many workers unable to meet basic needs.

The Guardian

• “The pressure is too much … We can’t even sleep at night,” — Moleboheng Matsepe, Garment Worker

The Guardian

• “We are busy looking at diversifying or moving more and more to the South African market without reducing what we are sending to the US.” — Mokhethi Shelile, Trade Minister

The Guardian

• “My heart breaks every time, because I don’t like the life I am living … I wish I had still had my husband here to take the burden with me.” — Mapuseletso Makhake, Garment Worker

The Guardian

The ongoing situation highlights the precarious balance between international trade policies and local economic stability, particularly in developing nations like Lesotho.

The Guardian