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Lesotho Receives Tariff Relief from the US, but its Economic Struggles Continue

U.S. tariffs, lowered from 50% to 10%, have devastated Lesotho’s Tzicc clothing factory, halting operations, risking 12,000 jobs, and leading to a state of disaster declaration as the nation grapples with economic turmoil.

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The U.S. tariffs, initially set at 50% and later reduced to 10%, have significantly impacted Tzicc, a clothing manufacturer in Lesotho, leading to halted operations and widespread job losses.

The factory, which employs 1,300 workers to create sportswear for American retailers, has seen orders drop sharply. Lesotho’s textile sector, which is crucial to its economy and employs over 30,000 people, now faces uncertainty, with approximately 12,000 jobs at risk.

The tariffs were justified by the U.S., citing Lesotho’s high import tariffs on American goods, a claim contested by the Lesotho government. As unemployment reaches 30% overall and nearly 50% among youth, the Lesotho government has declared a state of disaster due to economic losses linked to these tariffs.

Former workers, such as Mapontso Mathunya, are struggling to find new employment, and the overall economic outlook for Lesotho is bleak.

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