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Implications
Based on the most recent updates, here is a summary of the US tariffs on Madagascar:
Latest US Tariffs on Madagascar
Current Tariff Rate: As of August 1, 2025, the US has imposed a 15% reciprocal tariff on imports from Madagascar. This is a significant adjustment from the previously threatened rate of 47% earlier in the year.
Background: The US, under President Donald Trump, set an August 1 deadline for countries to renegotiate trade deals or face new, higher tariffs. Madagascar, along with many other countries, was unable to secure a specific trade deal with the US to avoid the new tariff regime. However, Madagascar's final rate of 15% is much lower than the 47% that had been initially announced, which was calculated using a formula based on bilateral trade deficits.
Deals and Agreements
No New Deal: Madagascar has not reached a new trade deal or agreement with the US to secure a tariff exemption or a more favorable rate.
African Growth and Opportunity Act (AGOA): The new tariffs effectively override the benefits of the African Growth and Opportunity Act (AGOA), which previously granted duty-free access for many Malagasy products to the US market. AGOA itself is set to expire on September 30, 2025, adding to the uncertainty.
Madagascar's Diplomatic Efforts: In the lead-up to the August 1 deadline, Madagascar had been engaging in diplomatic efforts, including consultations with other African countries to coordinate a common position and bilateral discussions with US authorities.
Pivot to the UAE: Facing the threat of steep tariffs, Madagascar has reportedly been exploring new economic partnerships, particularly with the United Arab Emirates (UAE), seeking investments in sectors like tourism and energy to diversify its economy and reduce its reliance on the US market.
Impacted Companies and Sectors
The new tariffs are expected to have a significant impact on Madagascar's key industries:
Textile and Apparel Sector: This is by far the hardest-hit sector.
Jobs: The textile and clothing industry is the largest formal employer in the country, with approximately 180,000 jobs. An earlier estimate from April, when the tariff threat was 47%, warned of up to 60,000 job losses. While the final 15% tariff is lower, it still poses a serious threat to the industry's competitiveness in the US market.
Exports: The US is a crucial export market for Malagasy textiles, and the new tariff risks pricing Malagasy products out of the market.Other Key Exports: While textiles are the most vulnerable, other major Malagasy exports to the US that could be affected include vanilla, cloves, and various mineral products like nickel, cobalt, and titanium ores.
Overall Economy: The new tariffs are a serious blow to Madagascar's fragile economy, which had relied on exports to the US as a critical economic lifeline. The country's GDP could be negatively impacted, and the downturn risks reversing gains in poverty reduction and women's empowerment, as the textile sector is a major employer of women.
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United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.
Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |