• The U.S. reduced tariffs on Lesotho from a threatened 50% to 15%.
• Despite the decrease, Lesotho's textile industry faces potential closures and job losses.
• Tariffs remain high compared to competitors like Kenya, which enjoys a 10% tariff.
• Lesotho's economy is heavily reliant on textile exports, employing over 30,000 workers.
• The government seeks further tariff reductions to improve competitiveness.

Lesotho received a modified tariff rate of 15% from U.S. President Donald Trump, a significant reduction from the 50% rate threatened earlier this year. This adjustment follows an executive order that affected numerous countries, driven by reciprocal tariff dynamics, particularly citing that Lesotho imposes a 99% tariff on U.S. goods—an assertion that has puzzled local officials, as they dispute the accuracy of this claim, according to Reuters and Africanews.

The textile industry in Lesotho, which constitutes its largest private sector, has already faced severe setbacks due to the initial threat of high tariffs, resulting in canceled orders and mass layoffs. With approximately 30,000 workers in textile manufacturing and about 12,000 employed by factories exporting to the U.S., the economic repercussions of these tariffs have been catastrophic, as highlighted by numerous reports, including those from Africanews and Los Angeles Times.

Despite Trump's tariff cut to 15%, Lesotho's Trade Minister Mokhethi Shelile expressed skepticism regarding its sufficiency, citing ongoing competition against nations like Kenya, which benefit from even lower tariffs. Shelile stated, "The sad part is that it is still not good enough ... this will lead to job losses," illustrating the grim outlook for Lesotho's apparel sector, according to Reuters and Los Angeles Times.

As the economic implications of reduced trade continue to unfold, factory closures loom large. The Tzicc clothing manufacturer, which had employed about 1,300 workers, has been significantly impacted, with business drying up amid the looming tariffs. Many workers are now left in uncertainty, driving home the message that even the reduced tariff may not suffice to save the textile sector from further decline, as emphasized by trade representatives from Reuters, Africanews, and Los Angeles Times.

Moreover, local businesses are actively seeking new markets outside of the U.S., attempting to pivot as they navigate through these challenging shifts. The long-term outlook for Lesotho's textiles remains precarious, particularly as the country grapples with high unemployment rates already pervasive across its population of over 2 million, according to Reuters and Africanews.