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Madagascar

US Revised Tariffs (%)

15

Ease of doing business

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
15
47
8.7
1
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
0.05
0.73
-0.68

Implications


The trade landscape for Madagascar has been significantly altered by two major, simultaneous events: the expiration of the African Growth and Opportunity Act (AGOA) and the implementation of the new US "reciprocal tariffs."


Here is an update on the US tariffs and agreements affecting Madagascar as of October 2025:

Area

Status (October 2025)

Key Details

AGOA Status

Expired

The African Growth and Opportunity Act (AGOA), which provided duty-free access for nearly all Malagasy goods to the US market, officially expired on September 30, 2025, with no extension passed by the US Congress.

Current US Tariff Rate

15% (Implemented)

Imports from Madagascar are now subject to the US "reciprocal tariff" rate, which is currently set at 15%. This rate is a substantial increase from the 0% duty they enjoyed under AGOA.

Initial Threatened Rate

47%

Madagascar was initially threatened with a reciprocal tariff rate as high as 47% based on the US's formula (trade deficit/total imports), but the rate was later set at the lower, but still damaging, 15%.

Deals and Agreements

None (Bilateral FTA)

Madagascar has not secured a separate bilateral free trade agreement (FTA) with the US to replace AGOA. The country is reportedly exploring new economic partnerships, notably with the UAE, to diversify its trade.

Major Companies Impacted

Textiles/Apparel and Vanilla Exporters

The textile and apparel industry is the most vulnerable, as it is Madagascar's largest formal employer and was highly reliant on AGOA's duty-free access. Vanilla is another major export now subject to the 15% tariff.



Impact on Companies in Madagascar


The expiration of AGOA and the imposition of the 15% tariff pose a severe threat to Madagascar's key export sectors:


  • Textile and Apparel: This sector is the country's main source of formal industrial employment (approximately 180,000 jobs). Losing the 0% duty-free advantage under AGOA means Malagasy products now face a 15% price disadvantage against competitors in the US market, threatening job losses and factory closures.


  • Vanilla and Spices: Madagascar is a major global vanilla exporter, and this high-value commodity is now also subject to the new tariff, impacting its competitiveness.


  • Mining: Exports of mineral products like cobalt and nickel are also affected by the new tariff regime, though the primary concern remains with textiles.

US Revised Tariffs

Country Tariffs

Balance of Trade

Commercial Guide

Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals

Tariff Rate for US

World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.

US Imports Guide 

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 : ForbesUSDA 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.

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