US Tariffs Silence Lesotho’s Textile Industry, Thousands of Jobs Lost

Once vibrant with the thunderous chorus of sewing machines, a prominent clothing factory in Lesotho now stands eerily silent, its once-bustling floors barren and equipment gathering dust. This dramatic cessation of activity marks a profound crisis, directly linked to new trade policies and their far-reaching global implications.

The factory, Tzicc, a cornerstone of Lesotho’s vital textile industry, had for years thrived on exports to major American retailers like JCPenney, Walmart, and Costco, providing steady employment for 1,300 individuals. However, the imposition of US tariffs by the Trump administration cast a long shadow over its operations, creating an immediate and unsustainable threat to its very existence.

As the threat of increased tariffs loomed, American buyers ceased placing new orders, fearing the prohibitive costs. Tzicc management, in a desperate attempt to mitigate losses, rushed to fulfill existing commitments, but with no fresh demand, the inevitable came swiftly: the vast majority of its workforce was regretfully sent home, many with the understanding that their departure could be permanent.

Rahila Omar, a compliance manager and one of the few remaining staff in the desolate facility, reflected on the heartbreaking irony as she surveyed the rows of quiet machinery. The factory’s forced closure is not merely a setback for Tzicc but a stark warning for other manufacturers in Lesotho, a nation where widespread poverty makes job losses profoundly devastating for families.

Lesotho’s deep-rooted economic relationship with the United States dates back decades, solidified by initiatives like the African Growth and Opportunity Act (AGOA) in 2000, which allowed duty-free access for its goods to the US market. This agreement fostered a booming textile sector, with 75% of Lesotho’s exports, particularly denim, destined for American consumers, earning it the moniker “Africa’s denim capital.”

The Trump administration’s justification for the tariffs cited an alleged 99% tariff on US goods by Lesotho, a claim which the Lesotho government disputes, stating they have no knowledge of its calculation. This decision, purportedly based on trade deficits, overlooks Lesotho’s profound economic fragility, where nearly half the population lives below the poverty line and importing more US products is simply not feasible.

The economic repercussions of these US Tariffs have been catastrophic, leading the government to declare a state of disaster and exacerbating national unemployment. The 12,000 workers employed across Lesotho’s 11 factories exporting to the US market are predominantly women, many of whom are sole providers for their families, bearing the brunt of this Factory Shutdown and the ensuing Job Losses.

Despite proposals to pivot towards the neighboring South African market, such a shift would not generate sufficient revenue to even cover employee payrolls, underscoring the severe limitations faced by these businesses. Consequently, former employees now wander the streets, seeking scarce work at the few remaining operational factories, often turned away in a grim testament to the widespread economic impact.

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