Lesotho textile factories face closure amid US tariff uncertainty

Over 5,000 jobs in the sector are hanging in balance, and one of the country’s textile giants, Lesotho Precious Garments (PTY) Ltd and its subsidiary, Maseru E-Textiles (PTY) Ltd, are preparing to shut down operations, a domestic newspaper reported.

Both these companies have already reached out to the United Textiles Employees Union (UNITE) to discuss a possible three-month closure.

Despite the temporary suspension of the tariffs, US buyers have stopped orders, opting to wait for a definitive resolution. Buyers are paying a 10-per cent baseline tariff now while the temporary suspension holds.

Lesotho is yet to get a seat at the negotiation table with the United States over the tariff issue as all efforts by the former in that regard have hit roadblocks.

UNITE deputy general secretary Potloloane Monare said both the factories hope the temporary pause will offer the government time to renegotiate the punitive trade terms with the US administration.

Other small manufacturers like TZICC Clothing Manufacturers and Lucky Manufacturing that receive sub-contracted work orders will also be forced to close if Precious Garments shuts down, he cautioned.

President Trump’s 50-per cent tariff was calculated using a formula based on the trade deficit between countries and the total value of their imports from the United States. As a result, smaller economies like Lesotho, which import relatively little from the United States, were disproportionately penalised.

Fibre2Fashion News Desk (DS)