US tariffs create strong growth opportunity for Egypts apparel exports: AECE

Egypts apparel exports: Egypt apparel industry is poised to capitalize on the recent 10% tariff imposed by the US on clothing imports. Thanks to the Qualifying Industrial Zone (QIZ) agreement, Egyptian exports can enter the US duty-free, giving them a competitive edge over suppliers from China, India, Vietnam, Bangladesh, and Cambodia, all of whom are subject to the new tariffs.

Fadel Marzouk, Chairperson of the Apparel Export Council of Egypt (AECE), predicts that Egypt’s exports to the US could grow by 25% to 30% in the near term. The US was already Egypt’s top destination for ready-made garments in early 2025, with exports reaching $193 million in just two months.

To further strengthen Egypt’s position, plans are underway to establish an integrated textile city in Minya Governorate, attracting over $2 billion in investments. This initiative aims to boost production capacity and expand exports, particularly to the US.

AECE has outlined a comprehensive strategy to enhance the sector’s competitiveness, focusing on foreign direct investment, domestic manufacturing expansion, supply chain optimization, and increased export volumes. Even if the US revises tariffs after the 90-day grace period, Egypt will maintain its advantage under the QIZ agreement.

With strong government support, Egypt is also set to launch a major textile city spanning 5.5 million square meters, projected to drive apparel exports to $12 billion by 2031.

This shift in trade dynamics could be particularly relevant to your analysis of India’s textile export trends. Given your expertise in global textile market dynamics, how do you see India responding to these tariff changes?