Mass Lay-Offs Expected In Lesotho As U.S. Tariffs Bite

Labor unions have raised concerns that up to 20,000 jobs could be threatened as the country braces for a possible 50% tariff increase from the United States. Prior to the implementation of new tariffs by the Trump administration, Lesotho benefited from duty-free exports to the U.S. under the African Growth and Opportunity Act (AGOA), a trade initiative offering certain African countries tariff-free access to the American market.

Lesotho’s garment industry, the country’s second-largest employer, sends about 80% of its exports to the U.S. With American buyers now hesitant due to the looming tariff hike, new orders have significantly declined, leading many garment factories in Lesotho to halt production lines.