MASERU, Lesotho (AP) — The southern African nation of Lesotho has had its U.S. export tariff reduced from a threatened 50% to 15% but its crucial textile industry still faces massive factory closures, officials said on Friday.

Despite a reduction announced by U.S. President Donald Trump, the country’s textile sector says it remains at a competitive disadvantage and faces ongoing factory closures and job losses.

In April, the Trump administration announced a 50% tariff on imports from Lesotho, the highest among all countries.

The tariffs were paused across the board but the anticipated increase wreaked havoc across the country’s textile industry, which is its biggest private sector employer with over 30,000 workers.

About 12,000 of these workers work for garment factories exporting to the U.S. market, supplying American retailers like Levi’s and Wrangler.

The Associated Press reported this week that clothing manufacturer Tzicc has seen business dry up ahead of the expected tariff increase, sending home most of its 1,300 workers who have made and exported sportswear to American stores, including JCPenney, Walmart and Costco.