Lesotho: Workers face 'No work no pay' policy at factories following cancelled orders from US buyers due to tariff
"A Stitch In Time? Trump’s 50% Tariff Threat Slashed To 15% as Lesotho’s Garment Sector Scrambles" 2 August 2025
The United States (U.S.) has placed a 15% tariff on Lesotho following months of negotiations, down from a 50% tariff announced on April 2...
The initial 50% tariff threat prompted Lesotho’s government to declare a two-year state of disaster in July 2025...
“Lack of orders from U.S. buyers has compelled textile firms to put workers on short time with the principle of No Work No Pay. This has negatively affected other sectors like public transport, residential property, retail, and the informal sector economy,” says Thabo Qhesi, CEO of the Private Sector Foundation...
This disrupted Lesotho’s workforce, with unions reporting over 20,000 jobs at risk. The garment industry, supplying U.S. brands like Levi’s, Walmart, and Calvin Klein, employs ~30,000–40,000 workers.
Lesotho’s textile sector...faces uncertainty as factories announced temporary closures from July in the wake of tariff and African Growth and Opportunity Act (AGOA) concerns...
Precious Garments...reported “a great shortage of orders” in an open letter to the United Textile Employees Union (UNITE) as U.S. buyers retracted amid Trump’s threat of a 50% reciprocal tariff...
Lesotho will seemingly be relieved to have not received a 50% tariff; however, the aftermath of Trump’s Liberation Day had a substantial impact...Damage control is now in order as the nation looks to reinvigorate its garment sector.