On April 9th, as the United States officially imposed retaliatory tariffs of up to 50% on Lesotho's exports, the textile manufacturing industry of this small southern African country is facing an unprecedented crisis. Multiple clothing factories with Taiwanese and Chinese backgrounds have had their orders cancelled, and tens of thousands of workers may become unemployed.
Sam Mokhele, Secretary General of the Lesotho National Garment, Textile and Related Workers' Union, said that workers were "shocked and scared". He pointed out that the tariffs were due to a trade deficit of up to 2.345 billion US dollars between Lesotho and the United States, with Lesotho mainly exporting clothing products and importing high-value goods such as diamonds.
Under the framework of the African Growth and Opportunity Act in the United States, Lesotho has long enjoyed tariff free treatment, exporting 460 million rand (approximately 2.37 million US dollars) worth of clothing in 2024 alone. Nowadays, this system is under threat.
Taiwanese clothing manufacturer Hippo Knitting has sent a letter to its employees stating that American buyers have cancelled their May orders, leaving the company "in serious uncertainty" and will hold an emergency meeting on April 10th to discuss prospects.
Union leader Solon Senoch called on the government to intervene as soon as possible and "immediately negotiate with the United States to save tens of thousands of jobs". Mohao Theoela, the financial director of FNB Lesotho Branch, pointed out that although the country has been severely affected in the short term, it also provides an opportunity for the country to explore the European Union, South Africa, and African regional trade markets, and reduce dependence on the United States.
According to official data, Lesotho currently exports 74% of its manufactured goods to South Africa and only 13% to the United States. Analysts suggest that in the future, trade cooperation between the Southern African Customs Union and the African Continental Free Trade Area should be deepened to achieve long-term sustainable development.