Madagascar's textile industry is facing a significant threat, with approximately 60,000 jobs at risk due to the 47% tariff imposed by the US government.
This sector is a vital part of the country's economy, employing around 180,000 people and contributing to about one-fifth of Madagascar's GDP.
The African Growth and Opportunity Act (AGOA) previously allowed Madagascar to export goods duty-free to the US, but the new tariffs could have devastating effects on the industry.
Industry leaders, including Rindra Andriamahefa and Beatrice Chan Ching Yiu, are sounding the alarm, warning that investors may turn to countries with lower tariffs, such as those facing only a 10% tariff.
The Malagasy government is taking steps to address the issue, engaging in dialogue with the US and consulting with other affected African countries to coordinate a response.
With the textile sector being a major employer and export earner, the government is under pressure to find a solution to mitigate the impact of the tariffs.
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