As part of his global trade war, the American President is imposing particularly high customs duties on Madagascar. Despite its small size, this country and Réunion Island are among the hardest hit. These actions are jeopardizing thousands of jobs and disrupting regional trade balances in the Indian Ocean.

Up to 47% of customs duties for Madagascar

This is a bolt from the blue in the already tumultuous world of international trade. While Donald Trump is implementing protectionist measures against China, Europe, and Mexico, Madagascar is surprisingly being hit by one of the most severe tariff increases, potentially reaching 47%.

These actions by the American President were motivated by alleged “environmental and social dumping,” also targeting, just as unexpectedly, Réunion. This measure actually conceals a complex strategic maneuver combining electoral considerations and a readjustment of the political balance in the Indian Ocean.

Madagascar loses its privileged access to the American market

American market: Madagascar loses its privileged access

For Madagascar, this is a real shock. The island, as the first African country affected by these actions, now faces taxes exceeding 20% on its textile exports from the Free Zones, with some items even reaching an unbearable rate of 47%.

This is a real blow to this sector, which has previously employed tens of thousands of people in the industrial centers of Antananarivo and Tamatave. Another major sector affected is the vanilla industry, of which the region is the world’s leading exporter.

“It’s disastrous; our factories were operating at full capacity thanks to the benefits of AGOA and the Generalized System of Preferences. Our products are becoming uncompetitive on the American market,” says an executive from the Madagascar Business Association.

An economic strategy with lasting consequences

Trump’s main objective remains electoral. By committing to restoring jobs in America and targeting competition from low-cost nations, he is strengthening his message to American workers in strategic states.

However, this short-term perspective could prove counterproductive. Trump is targeting nations that were previously within the Western sphere. These actions will precipitate Madagascar’s transition to the Sino-Indian axis. As for Réunion, it was a French trading outpost in an area marked by instability. This decision will lead to a reorganization of trade, from which Washington could ultimately be the main loser.