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Türkiye’s manufacturing industry may position itself as a "strategic winner" amid a shifting global trade paradigm, as the new round of Trump tariffs retained the country’s relative advantage, a report prepared by the Turkish Clothing Manufacturers’ Association (TGSD) has assessed.
The Trump administration set tariffs on Turkish goods at 15%—higher than the previous 10% but still lower than rates applied to many competitors, including Bangladesh and Vietnam at 20%, Pakistan at 19%, China at 37.5%, and India at 50%.
According to the report, this relative gap compels American buyers to diversify their supply chains and strengthens Türkiye’s position as an alternative supplier.
"When compared with Asia, Türkiye stands out with its quality, reliability, and geographical advantages," Mustafa Gultepe, head of Turkish Exporters’ Association, told textile-focused sourcingjournal.com. "The increasing tariff burden on countries such as Bangladesh, Vietnam, and China compels U.S. buyers to diversify their supply chains, and in this regard, Türkiye offers both speed and consistency."
He added that Türkiye can move beyond being seen solely as a low-cost producer. "Our sector has the potential to achieve a position in the U.S. market comparable to Italy, supplying high-quality, value-added, and design-focused products," Gultepe said.
TGSD co-Chair Toygar Narbay echoed this assessment but noted that long-term gains require discipline and planning. "The tariffs have given us an advantage—and we have to realize the way ahead step by step," he said. "We need to keep in mind geopolitical developments and the many other factors that shape competition, but also recognize the advantages we already have: development capacity, a vertical supply chain, fast and flexible high-quality production, and the European mindset."
Narbay also pointed out that Türkiye’s fast-fashion ecosystem and integrated supply chain allow brands to respond quickly to changing consumer trends. “Our speed-to-market and ability to deliver smaller, more tailored batches are assets that global buyers increasingly value,” he said.
Despite these strengths, TGSD emphasized that decisive policy measures are necessary to translate tariffs into sustainable growth. The association’s report recommended several initiatives, comprising:
Narbay warned that without government backing, many manufacturers risk losing momentum. “We are seeing hundreds of firms under financial pressure. Access to affordable financing, credit guarantees, and streamlined bureaucratic processes are vital if we want to turn this opportunity into sustained growth," he said.
The optimism in the TGSD report comes against a backdrop of industry contraction. Between January and July 2025, apparel exports fell 6.2% year-over-year to $9.7 billion, down from $10.3 billion in the same period of 2024. In July alone, exports dropped 4.4%.
Narbay underlined that rising financial and energy costs have struck the sector, leading to losses in both production and jobs. TGSD projects that total employment in the industry could fall from 735,000 in 2022 to 527,000 by the end of 2025, representing a decline of 28%. The report also estimated that by year-end, the sector could face $1 billion in lost exports and a $1 billion rise in imports, equating to a $2 billion reduction in overall production.
While tariff changes create opportunities, wage differentials remain a challenge as minimum monthly wages in Asia hover between $100 and $200, whereas in Türkiye they exceed $500. Combined with a 25% rise in production costs over the past two years due to lira depreciation and volatile input prices, factories face pressure in pricing competitiveness.
Nevertheless, Gultepe insisted that focusing on value-added production can offset these structural disadvantages. “The Turkish apparel sector’s quality, sustainability, and reliable production capacity enable it to increase its presence in the U.S. market,” he said.
The United States currently absorbs a much smaller share of Türkiye’s apparel exports than the European Union, which takes around 70%. However, TGSD’s report stressed that the new tariff environment opens an opportunity to repair what it called "damage to exports in the transatlantic channel."
"Although the advantage gap against the EU has narrowed, Türkiye has the opportunity both to capture volumes lost by Asian countries and to compete in high-value-added production similar to the EU," Gultepe said.
Narbay concluded that if the industry seizes the current moment with coordinated public and private efforts, "Türkiye can move from being a reactive exporter to becoming a preferred partner in U.S. supply chains."
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