‘Only job I know’: tiny Lesotho’s garment workers reel from Trump’s 50% tariffs

TruthLens AI Suggested Headline:

"Lesotho's Garment Workers Face Job Losses Due to US Tariffs"

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TruthLens AI Summary

The garment workers of Lesotho are facing an uncertain future following the announcement of a 50% tariff by President Donald Trump on imports from the country. With Lesotho exporting around 20% of its $1.1 billion in goods to the United States, predominantly clothing, this tariff threatens the livelihoods of many workers. Makhotso Moeti, a factory worker who moved to the capital city of Maseru, expressed her fears of returning to poverty if the factories close. Trump's tariffs, which are set to take effect on April 9, are based on a controversial formula that penalizes countries with high trade surpluses with the U.S. relative to their imports. This sudden change in trade policy has left many in Lesotho and other affected African nations questioning the rationale behind such tariffs, which they argue do not reflect the actual trade dynamics at play.

Lesotho's economy is heavily reliant on the garment sector, which accounts for about 20% of its GDP and employs approximately 30,000 workers, mostly women. The African Growth and Opportunities Act (Agoa), which has provided tariff-free access to the U.S. market since 2000, has been crucial in developing this industry. However, the future of Agoa itself looks uncertain, with its expiration looming in September if not renewed by Congress. Trade Minister Mokhethi Shelile indicated that officials were preparing to advocate for an extension of Agoa but acknowledged the need for Lesotho to diversify its markets beyond the U.S. Amidst these uncertainties, garment workers like Nthabiseng Khalele are left hoping for intervention that might alleviate their plight, fearing that job losses would lead to dire consequences for their families and communities.

TruthLens AI Analysis

The article sheds light on the significant impact of Donald Trump's announced tariffs on Lesotho's garment workers, highlighting the precarious situation faced by those whose livelihoods depend on the garment industry. The narrative focuses on the fears and uncertainties that these workers experience, revealing the broader implications of U.S. trade policies on vulnerable economies.

Economic Vulnerability of Lesotho

Lesotho, a small, landlocked country, relies heavily on garment exports to the United States, with 20% of its total exports coming from this sector. The introduction of a 50% tariff poses a direct threat to these workers and the economy at large. The article emphasizes the limited options available for individuals like Makhotso Moeti, who have only known factory work, suggesting a cycle of poverty that could be exacerbated by these tariffs. This portrayal aims to evoke empathy from readers regarding the plight of the working class in developing countries.

Critique of U.S. Trade Policy

The article critiques the notion of "reciprocal tariffs" as presented by Trump, particularly emphasizing the lack of substantial tariffs that Lesotho imposes on U.S. goods. This point raises questions about the fairness and rationale behind such tariffs, illustrating the disconnect between U.S. trade policy and the realities faced by smaller economies. This critique serves to challenge the legitimacy of the U.S. government's actions, potentially rallying public opinion against such unilateral trade decisions.

Global Trade Dynamics

By drawing comparisons with other African nations facing similar tariff increases, the article situates Lesotho's challenges within a broader context of global trade relations. It highlights the shared struggles of various countries in Africa, which could foster a sense of solidarity among these nations, potentially influencing international discourse on fair trade practices.

Implications for Society and Economy

The potential consequences for Lesotho's economy, society, and political landscape are profound. If garment factories shut down, the resulting job losses could lead to increased poverty and social unrest. The article implies that such economic instability might compel the government to seek alternative trade agreements or bolster local industries, although the feasibility of these options remains questionable.

Audience Engagement

This article likely appeals to readers who are concerned about global economic justice, labor rights, and the implications of U.S. foreign policy on developing countries. It targets audiences who advocate for fair trade practices and those interested in the socioeconomic dynamics of Africa.

Market Impact

The reported tariffs could influence investor sentiment regarding companies involved in garment manufacturing or trade with Lesotho. Stocks associated with American retailers or those reliant on imports from vulnerable economies may experience volatility as the market reacts to these developments.

Geopolitical Context

From a geopolitical perspective, the article reflects ongoing tensions in U.S. trade relations and raises questions about the future of international cooperation. The focus on Lesotho can be seen as part of a larger narrative surrounding globalization and its challenges, resonating with current global discussions on economic policies.

Use of AI in Reporting

While the article does not explicitly indicate the use of AI, it is possible that AI models were employed for data analysis or to generate insights about the economic impact of tariffs. The language and structure of the article suggest a human touch, likely enhancing its emotional appeal and clarity.

The article is credible in its presentation of facts regarding Lesotho's dependence on garment exports and the implications of U.S. tariffs on these exports. The emotional narratives provided serve to underscore the human impact of policy decisions, although interpretations may vary based on individual perspectives on trade policy.

Unanalyzed Article Content

The day afterDonald Trumpannounced sweeping global tariffs, Lesotho’s garment workers feared for their jobs.

Last year,Lesothosent about 20% of its $1.1bn (£845m) of exports to the US, most of it clothingunder a continent-wide trade agreement meant to help African countries’ development via tariff-free exports, as well as diamonds.

Now, all that is at risk, after the US president imposed a 50% tariff on the impoverished landlocked country, which he claimed last month“nobody had ever heard of”.

Makhotso Moeti moved to Lesotho’s capital, Maseru, from the rural centre of the tiny mountainous kingdom entirely surrounded by SouthAfrica. “Factory work is the only job I’ve known for many years,” said Moeti, who attaches labels to Gap clothing.“If the factories shut down, I won’t have many options left. I’ll be forced to return home to the very poverty I thought I had escaped when I moved to the city.”

On Wednesday, Trump unveiled what he claimed were “reciprocal” tariffs, overturning decades of global trade policy.

The tariff rates, which are due to come into force on 9 April,range from 10% to 50%and were calculated with whateconomists labelled an “idiotic” formula, penalising countries that have the highest trade surpluses with the US relative to their imports from the US.

Dr Ratjomose Machema, a lecturer in economics at the National University of Lesotho, said: “I don’t understand how this is a reciprocal tariff because we really don’t charge that much in tariffs.”

Lesotho, which has a population of 2.3 million, was hit with the highest rate. In Africa, it was followed by Madagascar, a vanilla exporter, with a tariff of 47%; Botswana, a diamond producer, on 37%; oil-rich Angola with 32%; and the continent’s most industrialised economy, South Africa, on 30%.

Like thehard-hit, south-east Asian economies, the poor majority in these countries cannot afford expensive American products. In recent decades, China has overtaken western countries to become the largest trading partner of most African countries.

According tothe African Growth and Opportunities Act (Agoa) US data portal, Lesotho exported $237m of goods last year to the US and imported $2.8m. Agoa, which has allowed tariff-free access to the US market for thousands of product types since 2000, created a thriving garment industry, accounting forabout 20% of GDP.

There are about30,000 garment workersin Lesotho, mostly women, with 12,000 making clothes for US brands including Levi’s, Calvin Klein and Walmart in Chinese- and Taiwanese-owned factories. While most of the jobs pay the monthly minimum wage of $146-$163, they are still highly sought after in the poor, largely informal economy.

In Madagascar, which has a population of about 32 million, Agoa has also nurtured a significant garment sector, which employsabout 180,000 peoplein a country where GDP per head is just $575. In 2024, the island nationexported $733m of goods to the US, with clothing the top export, followed by vanilla.

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Ketakandriana Rafitoson, a political science researcher at the Catholic University of Madagascar, said: “The textile and apparel sector is really a cornerstone of Madagascar’s economy … [Tariffs] will have a drastic effect on the country.”

The future of Agoa, which will expire in September if it is not renewed by the US Congress, was looking precarious even before Trump’s announcement.

Lesotho’s trade minister, Mokhethi Shelile, said officials, who had been preparing to travel to the US to ask for an Agoa extension, would argue that the tariff calculations did not include digital services from US companies such as Android and Microsoft.

He added: “That being said, we recognise that we cannot rely solely on the American market.”

Afact sheetpublished by the White House to accompany Trump’s tariff announcement said: “Today’s action simply asks other countries to treat us like we treat them. It’s the golden rule for our golden age.”

In Lesotho, Nthabiseng Khalele, a garment worker sheltering from the rain after a long day in the factory, said: “My hope and wish is that our prime minister could somehow reach out to President Trump and ask him to at least show some compassion for Lesotho. If we lose our jobs here, I’m almost certain that many of us will end up sleeping on empty stomachs.”

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Source: The Guardian