In March 2026, it was reported that garment workers in Lesotho were being retrenched en masse and facing factory closures, allegedly due to buyer reluctance amid uncertainty regarding the continuation of the African Growth and Opportunity Act (AGOA), under which garments are granted duty-free access to the U.S. market, and uncertainty regarding US tariffs on garment exports.

In May 2026, Business & Human Rights Centre invited brands allegedly sourcing from affected factories. This includes Authentic Brands (for Reebok) (allegedly sourcing from Precious Garments), Fabletics (allegedly sourcing from Hippo Knitting), Perry Ellis (allegedly sourcing from Maseru-E) ,and JCPenney, Walmart and Costco (allegedly sourcing from TZICC). Responses and non-responses can be found below.