The formula used to calculate the latest US tariffs meant that low-income countries like Madagascar which import small quantities of US goods faced some of the highest tax rates.

Madagascar's textile and clothing sector employs around 180 000 people and accounts for around one-fifth of the country's gross domestic product, according to a 2023 report by the International Labour Organisation.

The country of 31 million people exported $733 million in goods to the US in 2024, much of that under the African Growth and Opportunity Act , which granted duty-free access to the US market for many goods produced in Africa.

"We estimate that around 60 000 jobs will be affected by the decision to raise tariffs to 47%," Rindra Andriamahefa, the Executive Director of an industry lobby group, said in a statement late on Tuesday, referring to permanent and temporary job losses.

Beatrice Chan Ching Yiu, the President of the lobby group, the Groupement des Entreprises Franches et Partenaires, said investors would turn to exporting countries which face only the minimum 10% tariff imposed by the Trump administration.

"The pandemic was one thing. What we are facing now is quite another," Ching Yiu said. "Unfortunately, measures such as temporary layoffs or dismissals may prove unavoidable."

Madagascar's government has begun consulting other African countries adversely affected by the tariffs to coordinate a common position.

"A constructive bilateral dialogue with US authorities is underway, including technical discussions aimed at understanding the rationale behind the decision," the Foreign Affairs Ministry said in a statement on Tuesday.

--Reuters--