A trade triumph for Egypt?

Trump’s trade war hits Asian exporters hard but for Egypt’s textile industry, it could be the break they’ve been waiting for.

With Egyptian exports facing only a minimal 10% tariff, Ahmed Al Bardini spots a unique opportunity for the national garment industry, as its goods become more competitive to the US market compared with southeast Asian rivals, such as Indonesia, Bangladesh and the Philippines, which now face tariffs of over 30%.

Industry leaders such as Fadel Marzouk of the Ready-Made Garments Export Council confirm that there has been a 15% uptick in exports, and that they are fielding increasing inquiries from American brands seeking to shift production from Asia to Egypt. This shift could attract other foreign investment as manufacturers seek tariff-friendly zones.

Challenges persist. Despite past preferential trade agreements such the QIZ (Qualifying Industrial Zones), Egypt has generally struggled to scale exports due to limited factory capacity, bureaucratic hurdles, and a shortage of skilled workers.

Sustainable success will require structural reform, Al Badini suggests. But if Egypt improves infrastructure, streamlines bureaucracy, and supports manufacturers with better financing and labour conditions, could the trade war mark a turning point for the country’s textile sector, from underdog to key global supplier?

Original article was written in Arabic by Ahmed Al Badini and published in Al Manassa on 15 April 2025. It’s available here.

Al Manassa is an Egyptian news website.

Summary by ZN.

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