Turkish industrial leaders are expressing significant concern following the implementation of a new 12.5% tariff by the United States on imports from Türkiye. The measure, which was signed by U.S. President Donald Trump and became effective on July 25, is being viewed by local representatives as a major hurdle for the Turkish apparel industry. Sector leaders warn that these US import duties could fundamentally weaken their standing in the American market, which remains one of the largest global destinations for clothing.
The Istanbul Chamber of Industry has characterized the decision as an injustice, noting that the Turkish textile export tariffs place domestic producers at a disadvantage compared to global rivals. Chairman Erdal Bahcivan highlighted that Türkiye does not maintain the large trade surpluses with the United States that typically trigger such measures, arguing that the decision contradicts the standard principles of reciprocal trade.
Sector Leaders React to International Trade Policy Shifts
The frustration is particularly visible among trade organizations that manage the textile export market. Giyaseddin Eyyupkoca, chairman of the Laleli Industrialists and Businesspeople Association, indicated that the industry feels let down by the decision, especially given the historically strong diplomatic relations between the two nations. He noted that the timing of these US import duties is particularly difficult as exporters were already navigating a period of economic volatility.
According to Seref Fayat of the Union of Chambers and Commodity Exchanges of Türkiye, the new measures have pushed the total tariff burden on Turkish products to 29%. This is significantly higher than the 16.5% rate applied to European Union countries. Fayat emphasized that this disparity effectively removes the competitive edge Türkiye once held over major Asian producers in the American textile export market, including nations such as Vietnam, Bangladesh, and Indonesia.
Rising Apparel Manufacturing Costs and Industry Contraction
The new international trade policy arrives during a period of internal struggle for the sector. High inflation and rising apparel manufacturing costs have already led to a visible contraction. Data from the Social Security Institution reveals that between December 2024 and May 2026, 1,011 textile companies and 4,766 apparel firms closed their doors. This 18-month period saw a total loss of 121,772 jobs across both sectors.
Reports indicate that more than 200 companies have relocated their operations to Egypt to mitigate these rising apparel manufacturing costs and seek more favorable operating environments. The Turkish apparel industry has now lost over 300,000 jobs in the last three years, highlighting the fragility of the sector as it faces these new external pressures.
Diplomatic Efforts to Resolve Turkish Textile Export Tariffs
Despite the current challenges, Türkiye remains a top-tier global exporter. In 2025, the country ranked fifth globally in the textile sector, holding a 3.3% share of a market valued at nearly $350 billion. While the U.S. currently accounts for approximately $1.4 billion of Türkiye’s total $26.2 billion in textile and clothing exports, the American market is seen as vital for future growth due to its massive annual import volume.
Government officials from the Turkish Trade and Foreign Ministries are reportedly engaging with their American counterparts to address the international trade policy changes. The primary goal of these discussions is to seek a reversal or a revision of the tariffs to at least match the rates applied to European competitors. As the United States has recently become Türkiye’s second-largest export destination, resolving the dispute over Turkish textile export tariffs remains a high priority for both the government and private sector stakeholders.
