As the July jobs report paints a grim picture, 114 companies plan layoffs in August - is yours on the list?
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US Job Growth Slows as Unemployment Ticks Up to 4.2%
114 Companies File WARN Notices for August Layoffs
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Layoffs Spread Across Industries: Tech, Retail, Health Care & More
Layoff Tracker: All the Companies Letting Go of Workers in August 2025
INEOS ABS USA
CAM Industrial Solutions
TouchPoint Services (AKA Compass Group)
United States Cellular Corporation
Lennox Industries
Pacific Premier Bank
Wellpath
Atria Wealth Solutions
Corteva
Prothena Biosciences Inc.
Hood Packaging Corporation
Microsoft
JC Penney
Central Valley Training Center, Inc.
Stephens Distributing Company
DAI Global, LLC
Morgan Truck Body, LLC
Reyes Coca-Cola Bottling, LLC
L&T Precision, LLC
Oerlikon Balzers Coating USA Inc.
Georgia-Pacific
Sutro Biopharma, Inc.
Boston Scientific Corporation
Mission Linen Supply
CAM Industrial Solutions
Highgate Hotels
CVS Health Corporation
ACDI/VOCA
Michaels Stores Procurement, Inc.
Incyte Diagnostics
JP Morgan Chase
Leidos Holdings, Inc.
Sapango, Inc. (Tre Posti)
Vertex Pharmaceuticals
Swat Fame, Inc.
The Mutual Group
Sodexo
Del Monte Foods, Inc.
Movate, Inc. (The Genesis Project)
Discovery Energy (Rehlko)
INOAC Exterior Systems, LLC
Accelerate360 Distribution, LLC
Nuttall Gear, LLC
First Student
Paramount Global
BioNTech Us, Inc.
Need It Now
Need It Now Delivers, LLC
Del Frisco's Double Eagle Steakhouse
Pixelle Specialty Solutions
Wells Fargo
Harpoon Henry's Seafood Restaurant
KIRA Services, LLC
KIRA Government Services
KIRA Services LLC and KIRA Training Services
Southeast Service Corporation (Services For Education)
Robert Kaufman, Inc.
Ranstad US
TEKsystems
Seviroli Foods
Tyson Foods
HyPro, Inc.
Transit Management of Volusia County, Inc.
Stingray Pressure Pumping
Gilead Sciences
Target
TransAxle, LLC
Nordstrom
Albertson's Baton Rouge
Randalls Store
ADRA International
Lightspeed Logistics Miami, LLC
Advanced Drainage Systems, Inc.
Encino Energy, LLC
JC Penney (Maryland)
Milwaukee Forge, LLC
Planned Parenthood Mar Monte, Inc.
Amazon Fresh
McDonald's Restaurants of California, Inc.
Khoros, LLC
Oxford Social Club
Mucci Tehachapi, Inc.
Nasco Education, LLC
Social Distribution, LLC
Walmart
BLST Operating Company, LLC
LPL Financial, LLC
CRST Expedited, Inc.
Whitsons Food Service, LLC
Milgard Manufacturing, LLC
Columbus Regional Health
Joe's Crab Shack
Goldman Sachs and Co., LLC
Prineville Facility
Design Group Americas and Red Lion, LLC
Pocino Foods Company
IG Design Group Americas, Inc.
Bowhead Missions Solutions, LLC
International Business Machines-Coppell
Accenture
Rogue Valley Transportation District
Activision Blizzard
Science Systems and Applications
Management and Training Corporation
Pourlessoins (Synergy Health Services and Zomleben)
Northwest Offset Printing, Inc.
Santa Maria Hostel
TT Electronics Facility IRC (Plano)
Ford Design Studio
NYP Holdings, Inc.
Sonoco Products
DHL
OTG Management - Terminal 8
U.S. Cotton, LLC
Are Tariffs Fueling a US Job Market Recession?
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August Layoffs Up from July, But Below June's Peak
FAQs
The summer is turning colder for many American workers. As the July jobs report shows slowing growth and rising unemployment,have filed notices to lay off employees in August 2025, potentially affecting thousands across the country, as per a report.The latest numbers from the Bureau of Labor Statistics show job growth totaling justin July, falling well short of economists' expectations and underscoring growing concerns about the health of the US labor market as US president Donald Trump ramps up tariffs, as reported by CNBC. To make matters worse, the unemployment rate ticked up to 4.2%, a figure in line with forecasts but worrying given that previous months' job totals were also revised downward by a combined 258,000, as per the CNBC report.ALSO READ: Trump's name reportedly redacted from Epstein files — here's what the FBI doesn't want you to see Meanwhile, WARNTracker.com, which monitors Worker Adjustment and Retraining Notification Act filings, found that a total of 114 companies have notified of the potential upcoming layoffs in August, as reported by Newsweek.While some are minor, involving just a few employees, but others are far more severe, with companies like Microsoft, Georgia-Pacific, and Pixelle Specialty Solutions each expected to lay off between 501 and 1,000 workers, according to the report.ALSO READ: Atlassian boss Mike Cannon-Brookes axes 150 jobs via AI, then defends his private jet in brutal video message The layoffs span nearly every major sector of the economy, from software and pharmaceuticals to retail, food, health care, and logistics, as per the Newsweek report. Whether you're working at a hospital or a high-tech firm, no industry seems immune. Employees at big names like Microsoft, Wells Fargo, CVS Health, Target, Nordstrom, JP Morgan Chase, Amazon Fresh, Walmart, and McDonald's could be among those affected, according to the Newsweek report.Here is the full list, which is based on WARN notices, provided by WARNTracker.com:ALSO READ: Microsoft lays off thousands, makes $27 billion profit in Q2 — CEO Satya Nadella doubles down on AI mania While layoffs are rising, experts caution against linking them solely to a struggling economy, as per Newsweek. Some companies may be reducing staff to boost profits or adapt to shifting demand, according to the report. But larger macroeconomic forces are clearly at play, including global tariffs and domestic policy changes, as per the Newsweek report.Daniel Alpert, executive chairman of Westland Capital LLC, told Newsweek that the "jury's still out" regarding the impact of tariffs on American employers and workers/consumers, and highlighted that as soon as there is a substantial impact on unit sales, a recession will essentially be in effect, as reported by Newsweek.He explained that, "Conversely, in intermediate goods, when you have price rises in primary inputs that affect the ability of domestic manufacturers to manufacture without losing money, you're going to have layoffs and there's your recession. So, it really depends on what this all comes out to be in the end," as quoted by Newsweek.Alpert said that, "My general overall answer is what [Trump] wants to do, he can't do without tanking the economy. Can he do something less than what he is fulminating about? Yeah, there are things he can do to fine-tune the system that could even be beneficial. But that's not what's coming out of his mouth, or his pen, at the moment," as quoted in the report.If you're concerned about job security this month, it's worth checking whether your employer is on the WARN list. Layoffs are expected to increase from July's 95 employers to 114 in August, even if the number remains lower than June's 160, as per the Newsweek report.The range of layoffs varies, some companies are cutting just a handful of jobs, while others are slashing hundreds, according to the report. Some of the businesses affected include food distributors, healthcare providers, banks, tech firms, manufacturers, and logistics companies, according to the Newsweek report.As the US continues navigating uncertain economic condition, with tariffs, inflation, and consumer behavior all in flux, the job market may remain unpredictable in the months ahead, as per Newsweek.A mix of rising costs, global tariffs, and shifting strategies is prompting companies to reduce staff, as per the Newsweek report.Check WARNTracker.com, employers are required to file notices ahead of mass layoffs.
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Economic Times
38 minutes ago
- Economic Times
August Layoff Alerts: 114 Companies Set to Cut Jobs as Job Market Woes Worsen
US Job Growth Slows as Unemployment Ticks Up to 4.2% 114 Companies File WARN Notices for August Layoffs Live Events Layoffs Spread Across Industries: Tech, Retail, Health Care & More Layoff Tracker: All the Companies Letting Go of Workers in August 2025 INEOS ABS USA CAM Industrial Solutions TouchPoint Services (AKA Compass Group) United States Cellular Corporation Lennox Industries Pacific Premier Bank Wellpath Atria Wealth Solutions Corteva Prothena Biosciences Inc. Hood Packaging Corporation Microsoft JC Penney Central Valley Training Center, Inc. Stephens Distributing Company DAI Global, LLC Morgan Truck Body, LLC Reyes Coca-Cola Bottling, LLC L&T Precision, LLC Oerlikon Balzers Coating USA Inc. Georgia-Pacific Sutro Biopharma, Inc. Boston Scientific Corporation Mission Linen Supply CAM Industrial Solutions Highgate Hotels CVS Health Corporation ACDI/VOCA Michaels Stores Procurement, Inc. Incyte Diagnostics JP Morgan Chase Leidos Holdings, Inc. Sapango, Inc. (Tre Posti) Vertex Pharmaceuticals Swat Fame, Inc. The Mutual Group Sodexo Del Monte Foods, Inc. Movate, Inc. (The Genesis Project) Discovery Energy (Rehlko) INOAC Exterior Systems, LLC Accelerate360 Distribution, LLC Nuttall Gear, LLC First Student Paramount Global BioNTech Us, Inc. Need It Now Need It Now Delivers, LLC Del Frisco's Double Eagle Steakhouse Pixelle Specialty Solutions Wells Fargo Harpoon Henry's Seafood Restaurant KIRA Services, LLC KIRA Government Services KIRA Services LLC and KIRA Training Services Southeast Service Corporation (Services For Education) Robert Kaufman, Inc. Ranstad US TEKsystems Seviroli Foods Tyson Foods HyPro, Inc. Transit Management of Volusia County, Inc. Stingray Pressure Pumping Gilead Sciences Target TransAxle, LLC Nordstrom Albertson's Baton Rouge Randalls Store ADRA International Lightspeed Logistics Miami, LLC Advanced Drainage Systems, Inc. Encino Energy, LLC JC Penney (Maryland) Milwaukee Forge, LLC Planned Parenthood Mar Monte, Inc. Amazon Fresh McDonald's Restaurants of California, Inc. Khoros, LLC Oxford Social Club Mucci Tehachapi, Inc. Nasco Education, LLC Social Distribution, LLC Walmart BLST Operating Company, LLC LPL Financial, LLC CRST Expedited, Inc. Whitsons Food Service, LLC Milgard Manufacturing, LLC Columbus Regional Health Joe's Crab Shack Goldman Sachs and Co., LLC Prineville Facility Design Group Americas and Red Lion, LLC Pocino Foods Company IG Design Group Americas, Inc. Bowhead Missions Solutions, LLC International Business Machines-Coppell Accenture Rogue Valley Transportation District Activision Blizzard Science Systems and Applications Management and Training Corporation Pourlessoins (Synergy Health Services and Zomleben) Northwest Offset Printing, Inc. Santa Maria Hostel TT Electronics Facility IRC (Plano) Ford Design Studio NYP Holdings, Inc. Sonoco Products DHL OTG Management - Terminal 8 U.S. Cotton, LLC Are Tariffs Fueling a US Job Market Recession? August Layoffs Up from July, But Below June's Peak FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The summer is turning colder for many American workers. As the July jobs report shows slowing growth and rising unemployment,have filed notices to lay off employees in August 2025, potentially affecting thousands across the country, as per a latest numbers from the Bureau of Labor Statistics show job growth totaling justin July, falling well short of economists' expectations and underscoring growing concerns about the health of the US labor market as US president Donald Trump ramps up tariffs, as reported by CNBC. To make matters worse, the unemployment rate ticked up to 4.2%, a figure in line with forecasts but worrying given that previous months' job totals were also revised downward by a combined 258,000, as per the CNBC READ: Trump's name reportedly redacted from Epstein files — here's what the FBI doesn't want you to see Meanwhile, which monitors Worker Adjustment and Retraining Notification Act filings, found that a total of 114 companies have notified of the potential upcoming layoffs in August, as reported by some are minor, involving just a few employees, but others are far more severe, with companies like Microsoft, Georgia-Pacific, and Pixelle Specialty Solutions each expected to lay off between 501 and 1,000 workers, according to the READ: Atlassian boss Mike Cannon-Brookes axes 150 jobs via AI, then defends his private jet in brutal video message The layoffs span nearly every major sector of the economy, from software and pharmaceuticals to retail, food, health care, and logistics, as per the Newsweek report. Whether you're working at a hospital or a high-tech firm, no industry seems immune. Employees at big names like Microsoft, Wells Fargo, CVS Health, Target, Nordstrom, JP Morgan Chase, Amazon Fresh, Walmart, and McDonald's could be among those affected, according to the Newsweek is the full list, which is based on WARN notices, provided by READ: Microsoft lays off thousands, makes $27 billion profit in Q2 — CEO Satya Nadella doubles down on AI mania While layoffs are rising, experts caution against linking them solely to a struggling economy, as per Newsweek. Some companies may be reducing staff to boost profits or adapt to shifting demand, according to the report. But larger macroeconomic forces are clearly at play, including global tariffs and domestic policy changes, as per the Newsweek Alpert, executive chairman of Westland Capital LLC, told Newsweek that the "jury's still out" regarding the impact of tariffs on American employers and workers/consumers, and highlighted that as soon as there is a substantial impact on unit sales, a recession will essentially be in effect, as reported by explained that, "Conversely, in intermediate goods, when you have price rises in primary inputs that affect the ability of domestic manufacturers to manufacture without losing money, you're going to have layoffs and there's your recession. So, it really depends on what this all comes out to be in the end," as quoted by said that, "My general overall answer is what [Trump] wants to do, he can't do without tanking the economy. Can he do something less than what he is fulminating about? Yeah, there are things he can do to fine-tune the system that could even be beneficial. But that's not what's coming out of his mouth, or his pen, at the moment," as quoted in the you're concerned about job security this month, it's worth checking whether your employer is on the WARN list. Layoffs are expected to increase from July's 95 employers to 114 in August, even if the number remains lower than June's 160, as per the Newsweek range of layoffs varies, some companies are cutting just a handful of jobs, while others are slashing hundreds, according to the report. Some of the businesses affected include food distributors, healthcare providers, banks, tech firms, manufacturers, and logistics companies, according to the Newsweek the US continues navigating uncertain economic condition, with tariffs, inflation, and consumer behavior all in flux, the job market may remain unpredictable in the months ahead, as per Newsweek.A mix of rising costs, global tariffs, and shifting strategies is prompting companies to reduce staff, as per the Newsweek employers are required to file notices ahead of mass layoffs.
Time of India
2 hours ago
- Time of India
US stock market rally explodes: Dow soars 500 points, S&P 500 & Nasdaq roar back as Microsoft, Nvidia, Apple, Palantir surge—weak jobs report fuels Fed cut buzz
Dow Jones, S&P 500 and Nasdaq surge as Wall Street bounces back- The U.S. stock market staged a powerful comeback on Monday, August 4, with the Dow Jones Industrial Average jumping over 500 points, the S&P 500 gaining 1.2%, and the Nasdaq climbing 1.6% by afternoon trading. This rally comes after a sharp sell-off on Friday and was driven by growing expectations of Federal Reserve interest rate cuts, following a surprisingly weak July jobs report. Today's rally was largely sparked by fresh labor data that showed the U.S. economy added only 73,000 jobs in July , far below expectations. Even more striking was the major downward revision of previous months' numbers—cut by 258,000 jobs—marking the biggest revision since 1968. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program This slowdown gave markets a reason to cheer, oddly enough, as it increased the likelihood of Federal Reserve interest rate cuts as early as September. Investors now see an 85% chance of a rate cut next month, with at least two more cuts expected before the end of 2025. That shift in expectations set off a buying spree across equities, with the Dow Jones up 500 points , the S&P 500 rising 0.78% , and the Nasdaq climbing nearly 1% on the day. Tech stocks, especially the big names in the Nasdaq Composite, were among the top gainers as hopes rose for cheaper borrowing costs. Market optimism also spread across sectors like communication services, real estate, and consumer discretionary, offering relief after a turbulent end to last week. Live Events Microsoft (MSFT) : Up ~2.3%, strong AI cloud momentum Apple (AAPL) : Gained over 2%, stable earnings outlook Nvidia (NVDA) : Rose ~3%, riding the AI chip wave Palantir (PLTR) : Continued climb, now S&P 500's YTD leader IDEXX Laboratories (IDXX) : Best gainer in the S&P 500 today after blowout earnings Soft July jobs report triggers rate cut optimism At the heart of this rebound was the latest non-farm payroll data, which showed the U.S. economy added only 73,000 jobs in July—a massive miss from Wall Street's expectations. Making things worse, revisions to May and June shaved off over 250,000 jobs from previous estimates. The unemployment rate also ticked up to 4.2%, while labor force participation slightly dropped. This slowdown in the labor market has strengthened investor belief that the Federal Reserve will move forward with interest rate cuts as early as September. According to the CME FedWatch tool, traders now see an 85% chance of a rate cut in the next Fed meeting, and they're pricing in up to 100 basis points of cuts by the end of 2025. Federal Reserve under political spotlight as data credibility questioned President Donald Trump, who is currently serving his second term, has put fresh pressure on the Federal Reserve and federal agencies. In a surprise weekend move, Trump fired the commissioner of the Bureau of Labor Statistics (BLS) following the disappointing jobs report, raising concerns about the political independence of key economic data agencies. Additionally, Fed Governor Adriana Kugler announced her resignation, intensifying speculation that the Trump administration may reshape the Federal Reserve's leadership ahead of critical policy decisions. The President has openly called for more aggressive rate cuts, framing the current economic slowdown as an opportunity to support American households and boost consumer confidence. Top Stocks to Watch Now Apple (AAPL) Apple is holding strong near $203/share with a market cap of over $3 trillion. A well-established leader in consumer devices and services, it continues to generate solid earnings and cash flow. Microsoft (MSFT) Microsoft's shares trade around $536, fueled by soaring demand for Azure cloud services and AI investments. Analysts praise its growth and expect strong momentum ahead. Alphabet (GOOGL) Google's parent company sits near $195/share with a focus on search advertising, cloud, YouTube, and AI opportunities. Valuation remains attractive relative to peers. Treasury yields fall, gold hits record high as dollar weakens The weak payroll data sparked a sharp drop in U.S. Treasury yields, particularly on the 2-year note, reflecting the market's strong expectation for easing monetary policy. At the same time, the U.S. dollar slid against major global currencies, including the euro and yen, helping boost demand for commodities. Gold prices surged past $3,400 an ounce, hitting a new all-time high as investors sought safer assets. Analysts at Citi even lifted their gold outlook, forecasting prices may soon reach $3,500 to $3,600 per ounce if rate cut momentum continues and economic uncertainty grows. Oil prices slide as OPEC+ raises production While equities soared, oil markets moved in the opposite direction. Crude oil prices dropped on news that OPEC+ has agreed to increase oil production in September, aiming to cool off global prices. This weighed on energy stocks and raised concerns about potential oversupply in the months ahead. Lower oil prices could benefit consumers and help slow inflation, giving the Federal Reserve even more flexibility to ease monetary policy. However, energy sector stocks lagged behind Monday's rally due to weaker pricing power. Other Notable Movers Palantir (PLTR) : The S&P 500's best performer year-to-date, up over 100%, driven by AI growth and government contracts. But sky-high valuation (~690× P/E) presents risk. IDEXX Laboratories (IDXX) : A standout performer Monday, shares soared after strong quarterly results and raised guidance, pushing it to lead the S&P 500 rally. Wayfair and Others : Wayfair surged double digits on better-than-expected earnings, helping fuel broader sentiment across the market. Key earnings and economic reports to watch this week Investors will be watching closely as more corporate earnings roll out this week. Major names like Disney, AMD, Eli Lilly, and Palantir are set to report, and their guidance could further validate—or contradict—Wall Street's growing belief in an economic soft landing. Here's what's coming up: Date Report/Event Why It Matters Aug 5–6 ISM Services PMI, Jobless Claims Could confirm labor market softening Aug 7 Consumer Credit Data Indicates consumer spending and debt sustainability Aug 8 Fed speeches and Treasury remarks May offer insight into policy direction All week Q2 earnings (Disney, AMD, Eli Lilly) Tech and healthcare guidance will shape sentiment Wall Street rally driven by Fed pivot bets Today's strong stock market rebound reflects renewed investor confidence in interest rate cuts, fueled by soft job market data and growing signs of economic moderation. While optimism is high, the market remains on edge as the Federal Reserve navigates political pressure, inflation goals, and evolving economic risks. For now, traders are betting that lower rates will give equities another leg up, but upcoming earnings, inflation data, and Fed commentary will ultimately determine if this bounce marks a turning point—or just a brief relief rally. What investors should watch now Here's what smart investors are keeping an eye on: More economic data this week, including factory orders and weekly jobless claims, which could confirm or challenge the softening labor trend. Earnings season , which has so far been strong, with over 80% of S&P 500 companies beating expectations—helping support overall market strength. Tech sector momentum , especially AI-related stocks like Nvidia, Microsoft, and Palantir, which continue to lead the rally. Political volatility , as Trump's influence over economic institutions and Fed policy becomes a bigger factor heading into the 2026 election cycle. FAQs: Q1: Why did the stock market rally today after the weak payroll report? The weak jobs data boosted hopes that the Federal Reserve will cut interest rates soon. Q2: How did President Trump respond to the July jobs report? Trump fired the BLS commissioner, raising new questions about the Fed's independence and economic data credibility.
NDTV
4 hours ago
- NDTV
How US Tariffs Spell Disaster For This Clothing Factory Supplying To US Stores
Lesotho: The deafening roar of hundreds of sewing machines has gone silent. Spools of thread in every color are covered in dust. The warehouse is dark and empty. In the tiny African nation of Lesotho, clothing manufacturer Tzicc's business has dried up in the face of tariffs imposed by US President Donald Trump's administration. A few months ago, work was steady. The factory's 1,300 employees have made and exported sportswear to American stores, including JCPenney, Walmart and Costco. But when Trump announced sweeping new tariffs on nearly all US trading partners in April, Lesotho found itself topping the list, with a rate of 50% - higher even than that of China, where the economy is 8,000 times larger. Officials here and economic experts said they were baffled. Since then, Trump backed off - temporarily. During a monthslong pause for trade talks, the US has charged a baseline 10% tariff and announced new rates for dozens of countries starting Friday. Lesotho's rate will be set at Trump's whim, with aides suggesting that tariffs charged on goods from smaller African countries could top 10%. Many nations have received letters laying out a new tariff. With the pause set to expire Friday, Lesotho officials say they've not received one and they find themselves among the countries where Trump says officials simply don't have time for one-on-one negotiations. Leaders - and the 12,000 people employed by garment factories exporting to the US market - are still waiting. The damage has already rippled through Lesotho's economy, where textile manufacturing comprises the largest private industry with more than 30,000 workers in 2024. For Tzicc and its customers, the threat and apparent singling out of Lesotho were enough. Management decided to rush to deliver preexisting orders before tariffs resumed. But American buyers stopped placing new orders. With no work left, virtually all the factory's employees were sent home, potentially permanently. "Well, unfortunately, we finished," factory compliance manager Rahila Omar said, pointing out the irony of the strategy as she walked among rows of silenced and covered machines. "That is why now we don't have any work." Omar is one of a handful of employees left in the eerily quiet factory. A few remain in the accounting department; others empty leftover stock to a warehouse elsewhere. Officials and workers fear this may be a sign of what's to come for other factories in Lesotho, where poverty is widespread among the population of 2 million and most textile workers single-handedly support their families. In March, a month before slapping Lesotho with the 50% tariff, Trump described it as a place "nobody has ever heard of," struggling to pronounce the nation's name in a speech criticizing US foreign aid. It's true Lesotho is a "very minuscule economy," as its own trade minister, Mokhethi Shelile, described it. But its relationship with Washington dates back decades. The US was the first country to open an embassy in the capital, Maseru, after Lesotho declared independence from the United Kingdom in 1966. The military received US training, and hundreds of millions in US funds were sent to Lesotho to fight the HIV/AIDS epidemic via the now defunctUSAID office and the PEPFAR program. As textiles grew to become Lesotho's main export, some 75% of its product went to the US Lesotho became known as Africa's denim capital. If an American purchased jeans from a US brand such as Wrangler or Levi's, they may have been "Made in Lesotho," as tags still note. In 2000, the US signed the African Growth and Opportunity Act, allowing Lesotho and other African nations to export goods to the US duty free. Shelile said he was in the process of negotiating AGOA's September renewal when he was awakened in the middle of the night by texts from aides bearing news of the 50% US tariffs. "No, this cannot be real," Shelile remembers thinking. "What did we do to deserve this?" According to the Trump administration, Lesotho charges a 99% tariff on U.S. goods. The government here said it doesn't know how the US calculated that. In theory, the tariff decision was based on trade deficit: Lesotho's exports to the U.S. were around $240 million last year - mainly clothing and diamonds - and imports from the US were only $2.8 million. But in practice, the math is more complicated than that. And in reality, Lesotho simply cannot afford to import more US products. Nearly half the population lives below the poverty line. "The trade deficit that exists between Lesotho and the US is a natural trade deficit that can happen when you have these types of disparities between two economies," Shelile said. "It cannot be breached and certainly cannot be breached by imposing tariffs." Last year, Lesotho's overall unemployment rate was about 30%, national data shows. For those 35 and younger, it was nearly 50%. The threat of tariffs has exacerbated the national unemployment troubles, prompting the government to declare a state of disaster this month. "No matter how we slice it, we've already had a lot of losses," Shelile said. "People have lost quite a lot money. And to claw back and come back to where we were before this is going to take time." Most of the 12,000 people hired by Lesotho's 11 factories exporting to the US are women with children to feed and school fees to pay. Of those, 9,000 jobs are directly in the line of fire and an additional 40,000 will suffer indirectly from the U.S.-imposed tariffs, Shelile said. "We're talking people in real estate that are leasing some rooms," he said. "We're talking people in transport, whether it's long-distance haulage to the port, or it is a taxi driver taking people to work in the morning. They are going be affected." Mapontso Mathunya used to work on Tzicc's cutting room floor and is now unemployed. Her husband also is out of a steady job. With two young children, Mathunya was the family's breadwinner. She now tries to sell snacks and cigarettes on the street but finds it a daily struggle to bring home even a few cents. "Our financial burden has been heavy," she said. "Things are bad." The future of the Tzicc factory depends on what happens Friday, compliance manager Omar said. Owned by a Taiwanese national, the factory has been open since mid-1999. In a peak month, it made up to 1.5 million pieces of clothing for JCPenney. Key US customers for Tzicc - JCPenney, Walmart and Costco - did not reply to AP to comment. Pivoting to the neighboring South African market, one of the solutions proposed by the trade minister and industry consultants, wouldn't be enough to even cover the employees' payroll, Omar said. And even if American buyers return, it's unlikely the factory could rehire all its 1,300 workers, she added. Today, just a few blocks away, former employees try their luck looking for work at other factories that are still operating. Most are turned away. "Life is difficult," former worker Mathunya said. "There is nothing, nothing at all. People don't have money." (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
