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Tariffs

Lesotho's Textile Industry Reels Under US Tariffs

Strategic Insights

— 1 min read

As winter grips Lesotho, a group of textile workers search for jobs in the national capital of Maseru, amidst the uncertainty of the economic crisis caused by a US tariff policy. The US imposed a 50% tariff on Lesotho's textile exports in April, citing trade imbalances. This move has severely impacted the country's fragile economy, particularly the export-oriented textile industry. Lesotho, one of the world's least developed countries, is forced to confront the consequences of a trade policy that has shaken the very foundation of its economy.

Key Takeaways:

  • The US tariff policy has resulted in 13,000 job losses in Lesotho's textile industry, with 80% of the industry's orders being cancelled.
  • The textile industry is Lesotho's largest private employer, providing 36,000 jobs, most of which are held by women.
  • The unemployment rate in Lesotho is about 25%, with nearly half the population living below the poverty line.
  • Afri-Expo Textiles, a major local textile company, had to lay off nearly 500 workers to survive due to the tariff hike.
  • The company's planned expansion to 10 industrial zones in Maseru, employing over 10,000 people, did not come to fruition.
  • Lesotho's bilateral trade with the US reached 240 million US dollars in 2024, with Lesotho exporting goods worth 237 million dollars to the US, accounting for about 10% of its GDP.

Statistics:

  • 13,000 job losses in the textile industry due to the US tariff policy.
  • 80% of the industry's orders being cancelled after the tariff hike.
  • 36,000 jobs provided by the textile industry, most of which are held by women.
  • 25% unemployment rate in Lesotho.
  • 240 million US dollars in bilateral trade with the US in 2024.
  • 237 million US dollars in goods exported to the US in 2024, accounting for about 10% of Lesotho's GDP.
  • Nearly 2 million people in Lesotho, with almost half living below the poverty line.

Sources:

  • Xinhua (no specific date mentioned)
  • World Trade Organization (no specific date mentioned)
  • Mokhethi Shelile, Lesotho's Minister of Trade, Industry, Business Development and Tourism
  • Teboho Kobeli, Managing Director of Afri-Expo Textiles
  • US President Donald Trump's congressional address in March

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