A textile factory located in Lesotho that was previously producing golf shirts for Donald Trump’s merchandise line is now facing serious operational problems due to changes in U.S. trade policy.
It has been through the entire year that this facility has seen its orders from American companies going down dramatically.
The main source of such problems is the setting up of extremely high U.S. tariffs on textile and clothing raw materials, especially those coming from China.
These policy changes have unsettled the already existing global supply chains and considerably lowered the demand from U.S. buyers for finished products made in countries like Lesotho.
The situation of the workers is very sad. The factory, which was the origin of the employment of hundreds of workers (mostly women), has been compelled to reduce the number of shifts and lay off staff.
Employees with unstable incomes are finding it hard to maintain decent standards of living as the prices of food soar and the rate of employment drops making it more and more difficult to buy their basic needs.
Lesotho’s participation in the African Growth and Opportunity Act (AGOA), which allows duty-free access to U.S. markets, seems to have little effect in this case.
The tariffs between the U.S. and China have made the manufacturing process more expensive while at the same time reducing the demand for products, which is almost like canceling the advantages of AGOA.
In reaction to the calamity, the management as well as the workers of the factory together have written to the government of Lesotho asking for immediate aid and support in locating alternative export markets.
Labor unions have also urged international purchasers to keep their commitments to source from economically vulnerable countries. The government of Lesotho has not yet officially responded to these overwhelming economic pressures.
