Lesotho AGOA Tariffs Expire, Restoring Duty-Free Access to U.S. Market

• Lesotho goods will enter the US market duty-free after Washington's tariffs expired on July 24.
• The expiry of 122 tariffs imposed in February 2026 marks a significant development for Lesotho's garment industry.
• Uncertainty remains over AGOA, which is due to expire on December 31, 2026 unless renewed.
• Lesotho is participating in consultations with the US on modernising AGOA and securing long-term market access.

The restoration of duty-free access follows the expiry on July 24 of 122 tariffs that were imposed in February 2026, after the US Supreme Court struck down the Trump administration's initial 'reciprocal' tariffs.

On July 24, Washington's tariffs on Lesotho goods expired, restoring duty-free access to the US market for the country's export-dependent garment industry. This relief comes after months of uncertainty sparked by the Trump administration's introduction of sweeping tariffs earlier this year. The expiry of 122 tariffs imposed in February 2026 marks a significant development for Lesotho's largest manufacturing sector, which employs over 30,000 workers and is a cornerstone of the economy. The restoration of duty-free access follows the US Supreme Court's decision to strike down the Trump administration's initial 'reciprocal' tariffs.

The African Growth and Opportunity Act (AGOA) grants eligible African countries duty-free access to the US market. Lesotho's preferential access under AGOA has been restored, returning exports to the pre-tariff regime of zero duties. However, uncertainty remains over AGOA itself, as the trade agreement is due to expire on December 31, 2026 unless renewed. The United States is consulting stakeholders on modernising AGOA, including possible changes to eligibility requirements and greater emphasis on reciprocal trade.

The expiry of tariffs and the potential renewal of AGOA have significant implications for Lesotho's garment industry. Lawyers advising clients in this sector should monitor developments closely, as changes to eligibility requirements or duty-free access could impact their clients' business operations. The government is also working 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.

Lawyers advising clients in the Lesotho garment industry should monitor developments on AGOA's potential renewal and changes to eligibility requirements, as this could impact their clients' duty-free access to the US market.

Source: Original reporting via GroundUp