Madagascar could see up to 60,000 textile jobs wiped out due to a steep new 47% tariff imposed by the Trump administration, a senior industry official warned on Tuesday.
The tariff, part of a broader recalibration of U.S. trade policy, has disproportionately impacted low-income countries like Madagascar, which export modest volumes to the U.S. but import even less in return — a formula that pushed them into the highest tax bracket under the new rules.
The textile and garment industry is a cornerstone of Madagascar’s economy, employing around 180,000 people and contributing roughly 20% of its GDP, according to a 2023 International Labour Organization report.
In 2024, the island nation exported $733 million worth of goods to the United States, largely under the African Growth and Opportunity Act (AGOA), a U.S. trade program offering duty-free access for many African exports.
“We estimate that around 60,000 jobs will be affected by the decision to raise tariffs to 47%,” said Rindra Andriamahefa, executive director of the Groupement des Entreprises Franches et Partenaires (GEFP), the country’s main export industry lobby.
GEFP President Beatrice Chan Ching Yiu warned that investors are already looking to shift production to countries facing only the minimum 10% tariff under the new policy.
“The pandemic was one thing. What we are facing now is quite another,” she said. “Unfortunately, measures such as temporary layoffs or dismissals may prove unavoidable.”
The government of Madagascar has begun talks with other African countries hit by the new tariffs in an effort to form a united front.
“A constructive bilateral dialogue with U.S. authorities is underway, including technical discussions aimed at understanding the rationale behind the decision,” Madagascar’s foreign affairs ministry said in a statement.