Trade minister warns of further job losses as U.S. market access shrinks
Lesotho’s Trade Minister, Mokhethi Shelile, says U.S. President Donald Trump’s decision to reduce tariffs on the country’s textiles from 50% to 15% will do little to prevent the collapse of its largest export sector.
Speaking to Reuters on Friday, Shelile described the move as a “mixed feeling” moment, warning that the new rate still leaves Lesotho’s products uncompetitive against rivals like Kenya and Eswatini, which face only 10% tariffs.
The textiles industry, which once employed around 40,000 workers and accounted for 90% of Lesotho’s manufacturing exports, had thrived under the Africa Growth and Opportunities Act (AGOA), which granted duty-free access to the U.S. market. But Trump’s tariff threats in April prompted U.S. buyers to cancel orders, triggering mass layoffs.
“Fifteen percent for the textile industry is as good as 50%,” Mr. Shelile said, adding that without parity in tariffs, Lesotho’s factories cannot compete regionally.
The Trump administration defended its tariff policy, claiming Lesotho imposed 99% duties on U.S. goods a figure officials in Maseru dispute. The White House had paused its initial 50% tariff plan to allow negotiations, but the revised rate still leaves Lesotho’s main export industry in crisis.
Shelile said the government would continue lobbying Washington for a further reduction, while factories explore new export markets.
