In July 2025, it was reported that garment factories in Lesotho were shutting down, or at risk of shutting down, and garment workers were put on reduced shifts or temporarily laid off, due to the impact of the US administation's 'reciprocal' tariff, set at 50% for Lesotho.

TZICC, a factory reportedly producing for brands including JC Penney, Walmart and Costco, stated it had laid off workers for four months, due to halted orders by US buyers in response to the tariffs. Buyers had reportedly called for the factory to complete orders by 30 June, leaving the factory with no further orders, resulting in the layoffs.

In March 2026, Business & Human Rights Centre invited JC Penney, Walmart and Costco to respond. They did not.