The company laid off workers from both its factories, including the recent extension intended for local production.
In March, the Office of the United States Trade Representative (USTR) said that Rwanda would lose some benefits under AGOA in 60 days after it increased tariffs on second-hand clothes. The move sent shockwaves throughout the textile industry, with C&H saying some of its US customers have put orders on hold until further notice.
The Chinese garment maker, based in the Kigali Special Economic zone, largely depended on the US as its main export market destination, so with customers suspending orders, challenges were bound to happen.