Goods manufactured in Lesotho will again enjoy duty-free access to the United States following the end of Washington’s tariffs on 29 July. This change provides significant relief to the garment industry in the country, which is heavily dependent on exports, as well as to the thousands of workers whose employment was jeopardized.
The reinstatement of duty-free access follows the expiration of 122 tariffs that were imposed in February 2026, after the US Supreme Court’s ruling that dismantled the previous administration’s initial “reciprocal” tariffs.
In a statement released on Wednesday, the Lesotho Ministry of Trade, Industry and Business Development announced that this measure restores Lesotho’s preferential access to the US market under the African Growth and Opportunity Act (Agoa), reverting exports to a pre-tariff situation with no duties.
The ministry confirmed that textiles, apparel, and fishery products will now be allowed entry into the US duty-free.
Moreover, Lesotho has successfully avoided a new set of US Section 301 tariffs implemented on 24 July against 60 countries, ensuring the country maintains its duty-free privileges.
ADVERTISEMENT
CONTINUE READING BELOW
This announcement arrives after months of uncertainty for Lesotho’s leading manufacturing sector, as the previous administration imposed heavy tariffs earlier this year. The garment industry, employing over 30,000 people, raised alarms that these measures might result in factory shutdowns and severe job losses.
In reaction, many factories began laying off workers due to a decline in orders, while unions organized demonstrations in Maseru, calling for immediate government intervention and long-term strategies to protect employment.
The International Monetary Fund warned that these tariffs could threaten over 30,000 jobs in a country where clothing exports to the US are crucial to economic stability.
Even with this reprieve, uncertainties surrounding Agoa remain. The trade agreement, which offers eligible African nations duty-free access to the US market, is due to expire on 31 December 2026 unless renewed.
ADVERTISEMENT:
CONTINUE READING BELOW
The ministry pointed out that the United States is consulting with stakeholders to modernize Agoa, which may involve changes to eligibility criteria and a stronger focus on reciprocal trade.
Lesotho is actively engaged in these talks to secure long-term market access and ensure stability for investors and buyers.
The government is also collaborating with the Lesotho National Development Corporation to attract more US investment into the textile value chain while pursuing diplomatic efforts to establish a consistent and lasting trading relationship with the United States.
© 2026 GroundUp. This article was first published here.
