Trump’s Tariffs Push Lesotho’s Garment Industry to the Brink

The small southern African nation of Lesotho has become the unexpected face of a trade war few saw coming. In April 2025, U.S. President Donald Trump included Lesotho in a 50% tariff under a new reciprocal tariff schedule, citing a supposed 99% duty imposed by Lesotho on American goods. The decision stunned trade observers and devastated Lesotho’s textile industry, which is heavily reliant on American buyers. Now, with that tariff rate abruptly reduced to 15%, questions linger about the logic, legality, and lasting damage of a policy driven more by optics than economics.

Factories Fall Silent as Orders Vanish

The textile industry once served as Lesotho’s economic backbone. Factories filled orders for global giants like Levi’s and Walmart, employing tens of thousands. Trump’s 50% tariff declaration prompted U.S. importers to cancel shipments immediately, fearful of rising costs. The result was catastrophic.

Workers who earned roughly $160 a month suddenly found themselves without income. Production lines stalled. Managers shuttered facilities. Entire factory towns fell into silence. In Maseru, the capital, former employees now wait daily outside factory gates, hoping for last-minute work. Many leave disappointed, carrying only water bottles to suppress hunger pangs. The government declared a national state of disaster in July, acknowledging the widespread job losses and economic decline triggered by tariff uncertainty.

Lesotho's US tariff rate was slashed to 15%, down from the 50% threatened in April. However, textile industry players said the uncertainty around tariffs over the past few months has already devastated the sector https://t.co/INqWi54fQd pic.twitter.com/MCVX57Spiz

— Reuters (@Reuters) August 5, 2025

Lesotho Trade Officials Reject U.S. Claims

Lesotho’s leaders argue that the trade imbalance cited by Trump is not evidence of unfair policy, but a reflection of structural poverty. According to the Brookings Institution, trade imbalances with low-income nations often reflect capacity constraints, not protectionism. Trade Minister Mokhethi Shelile publicly rejected the claim that Lesotho imposes 99% tariffs, calling the number fabricated. Shelile emphasized that poor nations cannot afford to import U.S. goods at the same scale, especially when basic infrastructure and foreign reserves remain limited.

The controversy also puts a spotlight on the African Growth and Opportunity Act (AGOA), a U.S. initiative that for 25 years encouraged African exports by removing tariffs. Lesotho leaned heavily on AGOA benefits, growing its garment industry around duty-free access. With the recent hike, that decades-long partnership now seems tenuous. Even with the new 15% tariff, industry leaders say the damage is irreversible.

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Global Consequences and Lost Trust

This dispute extends beyond one country. Experts warn that erratic trade policy sends a dangerous message to global partners. AGOA requires African nations to meet benchmarks on human rights, transparency, and open markets. Lesotho met those standards. Yet the Trump administration chose punishment over partnership.

Lesotho’s garment industry may never return to its former strength. Trump’s sudden tariff rollback to 15%, though that relief remains provisional, offers limited respite after months of disruption, layoffs, and hunger. For workers who once stitched premium golf shirts for U.S. brands like Trump Golf or Levi’s, the economic toll remains visible. In the broader landscape, America’s decision to punish an impoverished partner has sparked more than outrage. It has accelerated a quiet shift in global trade, one where Washington’s promises appear increasingly unreliable.