Since the signing of the Camp David Accords in 1978, Egypt and the United States have had a strategic economic and political partnership. “The United States and Egypt share a strong partnership based on mutual interests in Middle East peace and stability, economic opportunity and regional security,” the U.S. State Department said. “Significant cultural and educational ties and assistance further enhance the strategic partnership.”
That has helped local exporters find opportunities in the world’s largest economy. According to CAPMAS, Egypt’s exports to the United States reached $2.25 billion last year, up 12.8% from 2023. That has made the world’s largest importer the third biggest buyer of Egyptian goods after Europe and Arab nations, according to the Egyptian Central Bank.
Textiles and clothing accounted for nearly 53% of Egypt’s exports to America last year, up from 45% in 2023.
Local clothing producers have a real opportunity to grow exports further, thanks to government ambitions for the apparel industry; a migration of clothing producers from Turkey, MENA’s largest clothing maker and exporter, and amicable relations with the U.S. administration.
Closed market?
The U.S. clothing market is difficult to access at scale. Stats from U.S. Import Data, a think tank, indicate that in 2024, China supplied 30% of America’s imported textiles, apparel, garments and other fabric products. The remaining nine top clothing exporters accounted for 44%, leaving 26% to the remaining 90 nations doing business with US clothing companies.
In MENA, Egypt and Turkey are the US’s biggest suppliers. The former accounted for 1.1% of America’s textile, apparel, and garment imports in 2024, according to Egyptian government data. Turkey supplied 1.7%, based on data aggregator Trading Economics.
In the coming four years, those dynamics could change dramatically, as US President Donald Trump has been using tariffs to erect trade barriers to invigorate domestic manufacturing, annulling all free trade agreements.
As it stands, the U.S. imposes 10% tariffs on all its imports after “pausing” the April 2 universal tariff scheme, where some duties rose above 50%. China stands out with 145% tariffs.
Come early July, that flat 10% could return to April 2 levels if countries don’t secure new permanent trade deals with the Trump administration.
Opportunity for Egypt?
Egypt is in an enviable position as its exports to the United States under the April 2 universal tariffs were already 10%. That means local exporters will likely be tariffed at the lowest rate possible, whether or not the two presidents reach a new trade deal.
Speaking to Asharq Business, Bloomberg’s Arabic platform, Mohamed Kassem, the head of the Egyptian Exporters Association, said the qualified industrial zones (QIZ) deal, a conditional free trade agreement between Egypt, the United States and the latter’s biggest ally in MENA, Israel, should boost exports under Trump.
Textile, garments, apparel and fiber products are in the spotlight, as they accounted for nearly 90% of QIZ exports in 2023, according to AmCham Egypt. Fadel Marzouk, head of the Textile Export Council, told local media in late April that Egypt’s annual clothing exports to America could rise 25% to 30% if Trump resumes his April 2 universal tariffs policy.
However, Kassem said the biggest concern is the uncertainty and unpredictability that have so far characterized Trump’s second term in office. A case in point is universal tariffs, which he halted for 90 days, 96 hours after announcing them.
US household consumption is also concerning. “Consumer confidence is cratering, debt burdens are growing, people are worrying more about their jobs, and they’re pulling back on some spending out of caution,” noted Alicia Wallace, a CNN Business senior economy writer, in April. “While the overall fundamentals that prop up the consumer remain solid, the risks have heightened significantly.”
Come prepared
In April, the Ministry of Industry and Transport said the government is investing EGP 27 billion ($528 million) to build two cities for textile industries in Minya and Fayyom governorates. Each will be over 5.5 million square meters with facilities to attract up to $3 billion in private-sector textile, apparel, garment, and fiber products investments, mainly for export.
During the launch event, Industry and Transport Minister Kamel El Wazir said the government plans to triple exports of textiles, garments, apparel, and other fiber products by 2030.
He also highlighted expanding infrastructure to attract more clothing investments, “including improving roads, bridges … and railways, in addition to expanding dry ports and logistics areas as well as communication, electricity and water services.”
Also in April, Suez Economic Zone Chairperson Walid Gamal El-Din announced the construction of a sportswear factory in Ismailia governorate for Thailand’s Hi-Tech Africa. He said the $20 million facility will produce up to 6 million garments annually, targeting the U.S. and EU markets. Production should start in 2026, Gamal El-Din added.
Turkey to Egypt
A significant factor altering the regional textile, apparel, garments and fiber products investment landscape is Turkey, MENA’s textile powerhouse that has struggled to maintain export markets for its homegrown clothing companies.
Data from the Turkish government shows ready-to-wear exports fell 7% in 2024. According to data aggregator Trading Economics, the country’s exports of textiles and worn clothing have been dropping since 2021, going from nearly $2.9 billion in 2021 to $2.23 billion in 2024.
Rising labor and manufacturing costs are significant factors. A 2025 report from the Turkish Clothing Manufacturers Association said the country “is now 61% more expensive than its Asian competitors and 46% costlier than those in North Africa.
As a result, Turkey-based textile manufacturers migrated to financially more feasible destinations, particularly Egypt. According to William Sellars, a veteran business and finance journalist for Arab Gulf Business Insights, a news portal, as of April, “more than 200 Turkish textile companies … now have a production presence in Egypt.”
Turkiye Today, a news outlet, reported labor costs in Turkey “have exceeded $1,000 per worker [annually], while in Egypt, they remain about $200, providing a significant cost advantage for manufacturers producing at high volumes.”
Second, Egypt’s “subsidized electricity and gas make it more attractive for textile manufacturers,” Turkish Kohan Textile Journal reported in March. The publication also noted Egypt’s QIZ could give Turkish manufacturers a way of minimizing the fallout from the U.S. universal tariffs come July. However, Egypt would need to renegotiate the agreement to secure a zero-tariff exemption, as Turkey, like Egypt, was tariffed 10% under the April 2 scheme.
Another advantage for Turkish-based textile manufacturers in Egypt is its “strong domestic cotton production,” which mirrors Turkey’s, as it was the world’s seventh-largest cotton grower in 2023, according to World Population Review, a data aggregator.
Turkiya Today highlighted two uncertainties. First, “Egypt might become vulnerable to sudden policy changes, economic downturns, or labor strikes.” The other is what the Turkish government might do “to stop the mass relocation of textile factories.” That includes introducing “government incentives, investment in smart manufacturing, [establishing] stronger relations with [the United States and other export destinations], and support for local suppliers.”
Going international
Adopting the latest manufacturing technologies and trends is increasingly essential to accessing wealthy Western markets. “Consumer preferences, technological advancements, and sustainability concerns [are causing] the textile industry to see a rigorous change in its traditional ways,” said GreyB, a consultancy.
Triple-Tree, a producer of textile manufacturing equipment, said, “As technologies continue to evolve, they will unlock new possibilities, shaping the future of textiles in ways we can only begin to imagine.”
Local clothing producers need to “embrace these innovations today [to] become tomorrow’s train blazer,” stressed Triple-Tree. That will allow them to “set standards for a more sustainable and technologically advanced industry.”
This article first appeared in May’s print edition of Business Monthly.
