Monday

07-21-2025 Vol 2028

Lesotho Faces Economic Crisis Following Major U.S. Tariffs on Garment Exports

Lesotho, once dubbed the denim capital of Africa due to its booming garment industry, is now grappling with a pressing economic crisis.

In April 2023, President Donald Trump imposed a staggering 50% tariff on imports from the country, prompting a severe downturn in the local textile sector. This has led the government of Lesotho to declare a two-year national state of disaster, reflecting the dire situation facing its economy.

On a chilly winter’s evening, workers from the Precious Garments factory stream out, their faces reflecting the uncertainty of their futures. Many employees here, such as 48-year-old Maboitumelo Ramakatane, are deeply concerned about their job security.

Ramakatane, who produces garments, including those worn by political figures like President Trump, expressed her fears regarding the diminishing orders coming to the factory. Currently, she finds herself on what is known locally as ‘short time,’ working only half the month for a meager salary of approximately $80.

“There are those who went for short time because there is no work. And then we have been told that in September, there will be no work at all at my factory,” Ramakatane lamented.

President Trump’s tariff announcement has had immediate repercussions. The trade deficit he pointed out is significant; however, Lesotho struggles to import many U.S. products due to its economic limitations. According to Trade Minister Mokhethi Shelile, despite the deficit, the relationship between Lesotho and the United States has historically been mutually beneficial.

Minister Shelile noted recent developments, including a license granted to Elon Musk’s Starlink satellite service to operate within Lesotho. He expressed hope that the longstanding ties with the U.S. would endure despite the current challenges.

Nevertheless, he added that even if the tariffs were lifted, it may be too late to save the jobs that have already been lost. Restselisitsoe Moshoeshoe, who manages a factory in Maseru that exports to Walmart, confirmed that the repercussions of the tariffs were felt almost instantly.

His factory had to close for several weeks, sending all its workers home. Moshoeshoe explained, “We cannot get raw material. We cannot export. Orders have been stopped because everybody doesn’t know what’s going to happen. People supplying us with orders were scared.”

The impact of job losses extends beyond the factories. Estimates suggest that while about 12,000 direct factory jobs are at risk, the ripple effects may result in approximately 40,000 people losing their livelihoods, particularly in a country where youth unemployment is already nearly 50%.

Outside the Levi’s factory in Maseru, a small market relying on garment-worker wages is barely surviving. Cobblers and food vendors, like 19-year-old Mtsoaki Heqoa, are feeling the strain as their clientele’s purchasing power diminishes.

Heqoa, who sells deep-fried bread known as vetkoek, voiced her frustrations about how the downturn has affected her small tuckshop business. She expressed a heartfelt plea to President Donald Trump: “I would say, President Donald Trump, if only you knew how many of us depend on American support. Can we offer him something so that he can stop whatever he’s doing?”

Most garment workers in the country are women, many of whom are single mothers battling high rates of HIV in Lesotho. These jobs have historically provided them with a sense of independence and pride, contributing significantly to their families’ well-being. However, as factories shutter their doors, this hard-fought progress is now in jeopardy.

Ramakatane, who produces Trump-branded golf shirts, reflected on her pride in the work she once found challenging. She stated, “When I started, it was hard work, but now it is my work. I do it perfectly. I’m proud of my work. It supported my family, so…”

The looming loss of their livelihoods has left many workers in Lesotho with little recourse but to turn to prayer. Ramakatane concluded with a poignant sentiment: “We are on our knees. Our hope is only to God, to change Donald Trump’s mind.”

As the situation continues to unfold, the future remains uncertain for many in this small nation, with the consequences of U.S. trade policies reverberating through its economy and the lives of its citizens.

image source from:npr

Abigail Harper