Following the announcement of the new US tariffs, it was stated that this development could provide both advantages and disadvantages for the Turkish textile sector. However, a different scenario is being discussed for the apparel sector. Industrialists argue that this development will have negative consequences for their sector.
In a statement regarding the issue, the Turkish Clothing Manufacturers Association (TGSD) said, “US President Trump announced on April 2 that additional tariffs would be imposed on clothing imports from countries including Türkiye, Sri Lanka, Cambodia, India, and Bangladesh. This development will negatively affect the Turkish apparel sector. If US importers terminate their cooperation with Turkish companies, a significant decline in our exports may occur. This situation is also expected to negatively impact employment in the sector.”
“The government must take urgent measures”
TGSD President Toygar Narbay emphasized that this decision would have serious effects on the Turkish apparel sector, stating, “We export a large portion of our products to the US, and these new tariffs will increase our costs.” He also emphasised the need for the government to take urgent measures and mentioned that they would inform sector representatives about this issue.
Narbay noted that the current economic policy has not achieved the desired result in reducing inflation at the expected pace: “The main reason for this is that the high-interest policy being implemented, along with the high-interest policy increasing the cost of doing business, has disrupted imports and exports through the applied commercial interest, and exchange rate differences have also increased product prices. At this point, not only monetary policies but also fiscal policies need to be effectively used to reduce inflation. In this context, the new tariffs to be applied in the apparel sector will increase both production costs and final product prices, causing inflation to rise even further.”
He also drew attention to the negative effects of the 258% increase in the apparel sector despite the announced 18% inflation rate between 2022 and 2024. “This situation has significantly weakened consumers’ purchasing power and led to a contraction in demand in the sector. The new tax regulations will further worsen this situation,” he said. Emphasizing that the government should reconsider this decision, Narbay stated, “More balanced and long-term solutions should be produced for the sustainability of our sector.”
In line with Narbay’s statements, it was noted that the government should reconsider the new tax regulations, otherwise, inflation rates are expected to rise even further in 2025.
He also addressed the difficulties SMEs face in accessing finance, adding that banks should act more flexibly to regulate the cash flow of SMEs in the sector.