Lesotho’s trade minister warned Friday that the country’s key textile industry remains in crisis despite U.S. President Donald Trump lowering a planned 50% tariff to 15%.
Trump’s executive order this week revised reciprocal tariff rates for dozens of countries. Lesotho, which had been bracing for the steepest 50% rate, will now face a 15% levy starting August 7.
“It’s a mixed feeling,” Trade Minister Mokhethi Shelile told Reuters by phone. “The sad part is that it is still not good enough … this will lead to job losses.”
Lesotho’s textiles sector is the country’s top export earner, employing around 40,000 people and accounting for about 90% of its manufacturing exports. Its growth had relied on duty-free access to the U.S. market through the African Growth and Opportunity Act (AGOA).
The threat of tariffs caused U.S. buyers to cancel orders, leading to factory layoffs. While the reduced tariff eases some pressure, Shelile warned it will not allow Lesotho to regain lost ground.
“Fifteen percent for the textile industry is as good as 50%, because there’s still no chance that our textiles will compete with Kenya or Eswatini, who have 10%. Those are our direct competition,” he said.
The Trump administration argues the tariffs are a response to Lesotho’s 99% duties on U.S. goods, a figure Lesotho officials dispute.
Since April, Lesotho’s factories have been searching for alternative markets. Shelile said his government would keep negotiating with Washington in hopes of a further reduction.