Madagascar’s textile industry risks losing 60,000 jobs due to US tariffs raised to 47%. This impacts a sector employing 180,000 and crucial to the economy, as $733 million in goods were exported in 2024. Industry leaders express grave concern, prompting governmental discussions with the US and other affected nations.
The textile industry in Madagascar is encountering a critical situation due to new tariffs imposed by the United States government, putting around 60,000 jobs at serious risk. With a steep 47 percent tariff rate taking effect, Madagascar, alongside other low-income nations, finds itself burdened by some of the highest taxes on US imports, impacting its economic stability significantly.
The textile sector in Madagascar currently employs approximately 180,000 individuals and constitutes about 20 percent of the nation’s GDP. Exports to the United States are vital, as evidenced by the $733 million worth of goods sent in 2024. Previously, the African Growth and Opportunity Act (AGOA) allowed many African goods access to the US market without tariffs, a situation now threatening to change drastically.
Rindra Andriamahefa, who serves as the executive director for an industry lobby group, raised alarm over the situation, noting, “We estimate that around 60,000 jobs will be affected by the decision to raise tariffs to 47 per cent.” This estimate covers both permanent and temporary positions, emphasizing the widespread ramifications of the tariff increase.
With the new tariffs in place, Madagascar’s textile sector finds itself under significant pressure, endangering the livelihoods of thousands and raising concerns about broader economic impacts. Beatrice Chan Ching Yiu, president of the Groupement des Entreprises Franches et Partenaires (GEFP), pointed out that investors may shift their activities towards countries only subject to a 10 percent tariff rate implemented by the Trump administration. She stated, “The pandemic was one thing. What we are facing now is quite another.”
Ching Yiu expressed her concern that reactive measures, including layoffs and terminations, might be unavoidable. In light of this, Madagascar’s government has started discussions with other African nations that are similarly affected by the tariffs in hopes of formulating a joint strategy.
The Ministry of Foreign Affairs has indicated that constructive dialogue with US officials is ongoing, focusing on understanding the rationale behind the tariff hike. “Technical discussions aimed at grasping the reasons for the decision are now in process,” the ministry confirmed in a statement on Tuesday.
In summary, Madagascar’s textile industry is facing an alarming threat because of recently imposed US tariffs, risking about 60,000 jobs. The increase to 47 percent in tariffs is said to jeopardize both permanent and temporary positions, critically affecting a sector that employs a significant portion of the workforce and contributes greatly to the national economy. As Madagascar seeks to engage in dialogues with the US and other affected African nations, the outcome will be pivotal for the country’s economic stability moving forward.
Original Source: au.news.yahoo.com
