Us Tariff Decision Puts Thousands Of Lesotho Textile Jobs At Risk

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The future of Lesothos textile industry remains uncertain after the United States reduced the countrys reciprocal tariff rate to 15. Last week, President Donald Trump reduced the tariffs from the 50 he had threatened to impose in April.

The textiles sector is Lesothos leading export industry and was heavily dependent on the Africa Growth and Opportunity Act AGOA, which grants qualifying African nations duty-free access to US markets.

Lesotho has been given a revised tariff rate of 15, as the nation continues to bear the brunt of the 50 tariffs that the US administration had threatened to implement in April. As a result, many US importers cancelled orders for Lesotho-produced textiles, which led to the loss of many jobs.

Despite the drastic tariff decrease, Lesothos Trade Minister, Mokhethi Shelile has expressed concern over the future of the textile industry.

We have two countries that are going to be giving us a run for the money, eSwatini and Kenya. They both have ten percent tariffs, and they are in the same market as us. It will be quite easy for the buyers to switch their allegiance to these two countries and place others in these two countries. We have close to 12 000 jobs in the direct firing line because of this tariff. An additional 40 000 people depend on these 12 000 jobs.

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