Madagascar Faces Threat of 60,000 Job Losses Due to US Tariffs on Textiles

Madagascar could lose 60,000 jobs in its textile industry due to new US tariffs. The 47 percent tariff threatens a sector that employs about 180,000 people and contributes to 20% of the GDP. Ongoing discussions aim to address these economic challenges.

Madagascar faces a precarious economic situation as the United States’ recent tariff increases threaten to upend its textile industry. An estimated 60,000 jobs may be lost due to a hefty 47 percent tariff on goods. This impact is particularly severe for low-income countries like Madagascar that import lesser amounts of U.S. products and are now burdened with some of the highest tax rates imposed.

The situation in Madagascar highlights the direct consequences of U.S. trade policies on vulnerable economies. With the potential loss of tens of thousands of jobs in a key industry, the country’s economic stability hangs in the balance. Ongoing discussions with U.S. authorities and coordination among affected nations may be crucial in finding a resolution to mitigate these impending job losses.

Original Source: au.news.yahoo.com