Madagascar's crucial textile industry is facing the potential loss of approximately 60,000 jobs following US President Donald Trump's decision to impose a 47 per cent tariff on goods from the country.
Vital to the country’s economy, Madagascar’s textile and clothing sector employs around 180,000 people and contributes about 20 per cent of the nation’s GDP, according to a 2023 report by the International Labor Organization (ILO).
With a population of 31 million, Madagascar exported goods worth $733 million to the US in 2024, much of it through the African Growth and Opportunity Act (AGOA) — a US trade program that allows many African countries to export selected goods duty-free. The US goods trade deficit with Madagascar was $679.8 million in 2024. The United States exported goods worth $53.41 million to Madagascar during the same period.
Rindra Andriamahefa, Executive Director, Groupement des Entreprises Franches et Partenaires (GEFP), notes, this figure includes both permanent job cuts and temporary layoffs.
Beatrice Chan Ching Yiu, President, GEFP, cautiones, the new tariffs would force investors to shift their focus to other exporting countries facing significantly lower trade barriers.
In response to the impending crisis, Madagascar’s government has begun coordinating with other African nations similarly affected by the US tariffs, seeking to establish a united front.
A constructive bilateral dialogue with US authorities is underway, including technical discussions aimed at understanding the rationale behind the decision, says Foreign Affairs Ministry, Madagascar.
As discussions continue, industry leaders in Madagascar fear that the steep tariffs could undo years of progress in the country’s garment manufacturing sector, which has long been a significant source of employment and economic stability.
