00:00The textile industry in Lesotho, a small mountainous country surrounded by South Africa, is starting
00:122026 with uncertainty.
00:14As the country's leading export industry and biggest private employer, the factories
00:19here make things like Levi's jeans and items for Walmart.
00:24But last year's U.S. imposed trade tariffs have totally upended the sector.
00:28Before 2025, factories like this one used to produce about 500,000 garments monthly, with
00:35the U.S. as a primary importer.
00:37Today, they only make 100,000 pieces per month and have had to lay off 1,000 workers.
00:45If we don't have the exports, it's very difficult for us to continue or run the factory.
00:51It really affects our production, and not only our production, but even the economy of the
00:57country.
00:58Then, it was not really easy for us when we lose, when we increase the tariffs, because
01:05we have to retrench.
01:07In April last year, the U.S. imposed a 50 percent tariff on imports from Lesotho as part of a
01:15sweeping global tax overhaul.
01:17Despite the U.S. reducing that number to 15 percent several months later, Lesotho government
01:23officials say the damage had already been done.
01:26Adding insult to injury, in September of last year, the U.S. chose not to renew a crucial
01:32trade pact with the region, the Africa Growth and Opportunities Act.
01:37According to officials, the result of all the turbulence has been an economic earthquake
01:42for textile companies, with some forced to make dire cutbacks.
01:47Some of the factories have got to go what they call short time.
01:511,000 will work for two weeks.
01:53Another 1,000 will work another two weeks.
01:58That now means they are getting a reduced pay.
02:02So you can imagine somebody now having to do with half of that.
02:07Data from the United Nations shows that Lesotho is one of the world's least developed countries
02:26with a population of around 2 million people and a GDP of about 2 billion U.S. dollars.
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