Lesotho’s Denim Industry Faces Crisis Amid US Tariffs

Lesotho’s Denim Industry Faces Crisis Amid US Tariffs

Today, the “denim capital of Africa” Lesotho is in crisis. This instability is a result of tariffs recently applied by the United States. With more than four million garment workers, the textile and garment industry is today the largest private sector employer in the country. It was dealt a crushing blow when US President Donald Trump in April declared a 50% tariff on imports from Lesotho. This decision has sent the industry into chaos. At its height, it employed over 50,000 people, many of whom are now just trying to get by.

Tucked into the mountains of Southern Africa, Lesotho is home to a little over two million Basotho (citizens of Lesotho). The garment factories in the country are known for producing jeans for iconic American brands such as Levi’s and Wrangler. As it turns out, these same factories provided sportswear to other major U.S. retailers such as JC Penney, Walmart, and Costco. These recent tariffs have dashed a growing flow of exports. These exports had been shielded by the African Growth and Opportunity Act (AGOA) since 2018.

TZICC, one of the five largest garment factories in Lesotho, has been operational since 1999 and is owned by a Taiwanese national. The factory itself has been hard hit by the Chinese tariffs, forcing the layoff of 285 employees and cutting back the work week for remaining employees. Aletta Seleso, a factory worker and member of the alliance, spoke about how losing her factory would devastate her community.

“We don’t know how we survive this one. We are going to die.” – Aletta Seleso

Thanks to the tariffs, Seleso’s work hours have been cut down to two weeks a month. As a consequence, her salary has been reduced by 50%. Likewise, Puleng Selane, who has been seeking work since March, said she views the worsening situation with despair.

“Now life is so hard… we often eat once a day but sometimes go to bed without any food.” – Puleng Selane

The harm caused by the tariffs goes well beyond single workers to entire communities. Some 12,000 manufacturing jobs in Lesotho depend directly on this trade policy. As factories speed up to meet sudden deadlines set by their clients under this cash crunch, temporary layoffs have become a given. Factory manager, Rahila Omar, described how this pressure from buyers forced factories to prioritize rushed production schedules.

“Because of the… pressure of the tariffs, our buyers wanted us to finish the order or the quantity as soon as we can. We were given a deadline of 30 June, but we finished before 30 June, and that’s why we have a layoff.” – Rahila Omar

The impasse has led to an unusual display of solidarity from blue-collar workers and business leaders. Tšolo Thakeli, an advocate for workers’ rights, called out the governments’ reaction to the crisis, which has disproportionately affected workers of color.

“There’s nothing tangible that the government has done or set to address the problem. [It’s just] empty promises.” – Tšolo Thakeli

Even in light of these disheartening realities, many in the industry have their fingers crossed for an eventual rebound. Mokhethi Shelile, a prominent South African garment industry leader, noted that difficulties were already appearing in the US market. This had been going on long before the first tariffs were levied.

“We already had some solutions, even before the tariff was announced, because the US market was already beginning to be a difficult market for us.” – Mokhethi Shelile

Shelile further pointed out a change in production focus to South Africa as the response strategy continues to advance and adapt. Just under a fifth of Lesotho’s garment sector serves the US market today.

Lesotho is once again confronted by immense challenges. In reaction, the government announced a national “state of disaster” to fast-track job creation efforts and address the rising unemployment. However, skepticism remains regarding its effectiveness. Thakeli stressed the need for genuine solutions to address the increasing unemployment that especially has the African community on the defense.

“We have graduates from every level… not having jobs. There’s a serious state of hopelessness amongst the youth.” – Tšolo Thakeli

Business owners are feeling the strain. Factory owner Sam Mokhele said he was worried about the long-term sustainability of their operations under these conditions.

“But what they said was [they may have to] shut down if things do not change.” – Sam Mokhele

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