Relief for Lesotho as US tariffs expire

Textile workers marching for AGOA renewal in Maseru in October 2025. Photo: Sechaba Mokhethi

Goods made in Lesotho will once again enter the United States duty-free after Washington’s tariffs expired on 29 July. It comes as a relief to the country’s export-dependent garment industry and thousands of workers whose jobs were threatened.

The restoration of duty-free access follows the expiry on 29 July of 122 tariffs that were imposed in February 2026, after the US Supreme Court struck down the Trump administration’s initial “reciprocal” tariffs.

In a statement released on Wednesday, the Lesotho Ministry of Trade, Industry and Business Development said the move restores Lesotho’s preferential access to the US market under the African Growth and Opportunity Act (AGOA), returning exports to the pre-tariff regime of zero duties.

The ministry said textiles, apparel and fisheries products will now enter the US duty-free.

It also said Lesotho escaped a new round of US Section 301 tariffs imposed on 24 July on 60 countries, meaning the country will continue enjoying duty-free access.

The announcement follows months of uncertainty for Lesotho’s largest manufacturing sector after the Trump administration introduced sweeping tariffs earlier this year. The garment industry, which employs more than 30,000 workers, warned that the measures threatened factory closures and mass job losses.

Many factories subsequently retrenched workers as orders slowed, while unions marched through Maseru calling for urgent government intervention and a long-term solution to protect jobs.

The International Monetary Fund warned that the tariffs could put more than 30,000 jobs at risk in a country where clothing exports to the US are a cornerstone of the economy.

Despite the reprieve, uncertainty remains over AGOA itself. The trade agreement, which grants eligible African countries duty-free access to the US market, is due to expire on 31 December 2026 unless renewed.

The ministry said the United States is consulting stakeholders on modernising AGOA, including possible changes to eligibility requirements and greater emphasis on reciprocal trade.

Lesotho is participating in those consultations in an effort to secure long-term market access and provide certainty to investors and buyers.

The government is also working through the Lesotho National Development Corporation to attract more US investment into the country’s textile value chain while continuing diplomatic efforts to secure a predictable and permanent trading relationship with the United States.

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