Madagascar is at risk of losing up to 60,000 jobs in its textile sector due to a 47% tariff imposed by U.S. President Donald Trump, according to an industry official. The tariff increase, which has been implemented using a formula that disproportionately impacts low-income countries with minimal imports from the U.S., has placed Madagascar among the hardest-hit nations. Industry leaders are warning that the steep tariffs threaten the sustainability of the country’s garment exports and could have a devastating impact on the national economy.
The textile and clothing sector in Madagascar employs approximately 180,000 people and represents around one-fifth of the country’s gross domestic product (GDP), as stated in a 2023 report from the International Labour Organization (ILO). In 2024, Madagascar exported $733 million in goods to the U.S., much of which benefited from the African Growth and Opportunity Act (AGOA), a programme that allows duty-free access to the U.S. market for certain African-produced goods.
Rindra Andriamahefa, the executive director of an industry lobby group, estimated that the tariff hike could lead to the loss of around 60,000 permanent and temporary jobs in the sector. “We estimate that around 60,000 jobs will be affected by the decision to raise tariffs to 47%,” Andriamahefa said in a statement on Tuesday.
Beatrice Chan Ching Yiu, the president of the Group mate des Enterprise’s Franches et Partners (GEFP), the lobby group representing the textile industry, expressed concern that investors would look to other countries where the minimum 10% tariff imposed by the Trump administration applies. “The pandemic was one thing. What we are facing now is quite another,” said Ching Yiu. “Unfortunately, measures such as temporary layoffs or dismissals may prove unavoidable.”
In response to the threat to its textile sector, Madagascar’s government has begun consultations with other African countries similarly affected by the U.S. tariff hike in order to coordinate a collective position. “A constructive bilateral dialogue with U.S. authorities is underway, including technical discussions aimed at understanding the rationale behind the decision,” the foreign affairs ministry said in a statement.