US Tariffs on Türkiye Deal a Severe Blow to Textile Exporters
US Tariffs on Türkiye Deal a Severe Blow to Textile Exporters
The United States has imposed an additional 12.5% tariff on covered goods imported from Türkiye, raising serious concerns across the Turkish textile and apparel industry.
The US tariff applies to Turkish products entering the American market. It is not a tariff imposed by Türkiye on American goods.
For Turkish manufacturers, the measure creates a new cost barrier in one of the world’s largest clothing and textile markets. It arrives while the industry is already facing high production expenses, factory closures, shrinking employment and competition from lower-cost suppliers. US tariffs on Türkiye
What tariff did the United States impose?
The United States introduced the additional 12.5% duty under Section 301 of the US Trade Act. The measure followed an American investigation into whether 60 economies adequately prohibit and prevent imports involving forced labor.
Türkiye was placed among the economies subject to the higher 12.5% rate.
The tariff took effect at 12:01 a.m. US Eastern Time on July 24, 2026. Because of the time difference, some reports in Türkiye referred to July 25 as the start date.
The new 12.5% charge is generally added to the normal US customs duty for each product. It should therefore not be confused with the total tariff paid on every Turkish garment or textile shipment.
The final amount varies according to the product’s customs classification, country of origin and any applicable exemption.
Turkish exporters face higher costs in the US
The tariff makes covered Turkish textile and apparel products more expensive to import into the United States.
American buyers importing these goods must pay the applicable duties at the border. In practice, however, the financial pressure can be passed back through the supply chain.
US customers may ask Turkish manufacturers to lower their prices. Exporters may have to absorb part of the additional cost, accept smaller profit margins or risk losing orders to suppliers in countries facing more favorable tariff conditions.
Some companies could instead increase their prices, but this may make their products less competitive in the American market.
Şeref Fayat, chairman of the apparel and clothing sector council at the Union of Chambers and Commodity Exchanges of Türkiye, said the combined tariff burden on certain Turkish products had reached approximately 29%.
That figure is not a universal rate for every Turkish textile or garment. The total tariff must be calculated separately for each product under the US Harmonized Tariff Schedule.
Industry leaders call the US decision unfair
Erdal Bahçıvan, chairman of the Istanbul Chamber of Industry, criticized the American decision and said it placed Turkish companies at a competitive disadvantage.
Bahçıvan argued that Türkiye does not consistently run the type of large trade surplus with the United States that might be expected to result in tougher trade measures.
Representatives of Istanbul’s Laleli textile and apparel district have also expressed concern.
Gıyasettin Eyyüpkoca, chairman of the Laleli Industrialists and Businesspeople Association, said the US tariff had arrived during an already difficult period for Turkish exporters. Businesses are contending with economic volatility, financing constraints and rising manufacturing costs.
Industry representatives are calling on the Turkish government to negotiate with Washington for a reduction, exemption or more favorable arrangement.
Competitors receive different US tariff treatment
The United States did not impose identical terms on all investigated economies.
Covered goods from Türkiye generally face the additional 12.5% Section 301 tariff on top of their normal US duties. Bangladesh, Cambodia, India, Indonesia and Malaysia were placed in the 10% group.
The European Union received a different arrangement. For covered EU products, the ordinary US duty and the new Section 301 tariff are generally capped at a combined 10%.
The United States also announced plans for textile and apparel tariff-rate quotas covering Bangladesh, Cambodia, Indonesia and Malaysia. Once implemented, these quotas will allow specified volumes of eligible goods from those countries to enter the US without the additional Section 301 tariff.
The quota system is expected to be connected to the participating countries’ use of American cotton or other US textile inputs.
Türkiye was not included in this planned quota mechanism. This omission could give participating Asian suppliers an additional advantage when competing for American orders.
Until the United States formally activates the quotas, covered textile and apparel imports from those four countries remain subject to their applicable 10% Section 301 rate.
Domestic problems make the US tariff more damaging
The American tariff comes as Türkiye’s textile and apparel sector is experiencing a prolonged domestic contraction.
High inflation, expensive financing, energy prices and rising labor costs have reduced manufacturers’ margins. Companies producing standardized or price-sensitive goods have found it particularly difficult to compete with suppliers in lower-cost countries.
Social Security Institution figures cited in recent Turkish reporting indicate that the number of registered textile businesses declined by 1,011 between December 2024 and May 2026. Textile employment reportedly fell by 41,086 during the same period.
The apparel industry recorded a larger decline. The cited data show 4,766 fewer registered apparel businesses and a reduction of 80,686 employees.
Together, textile and apparel employment fell by approximately 121,772 during those 18 months.
These figures indicate a net reduction in registered businesses and jobs. They should not automatically be described as an equal number of bankruptcies or confirmed permanent factory closures. Registrations can also change because of mergers, restructuring or reclassification.
There was one recent sign of stabilization. The number of companies and employees in the two industries reportedly increased together in April 2026 for the first time in almost four years. A single month of growth, however, does not yet demonstrate a lasting recovery.
The American market remains strategically important
Türkiye exported approximately $26.2 billion in textiles, apparel and clothing during 2025, according to Turkish Exporters Assembly figures cited by Türkiye Today.
Apparel and clothing accounted for about $16.8 billion, while textiles and raw materials generated approximately $9.4 billion.
Turkish exports from these industries to the United States reached around $1.4 billion. That represented approximately 5.3% of Türkiye’s combined textile and clothing exports.
Although the United States is not Türkiye’s largest market for these products, it remains strategically important. American companies import more than $100 billion in textiles and clothing annually, creating significant opportunities for international suppliers.
The market is also important for Turkish manufacturers seeking to reduce their dependence on Europe and expand sales of premium fabrics, home textiles, technical textiles and finished garments.
Türkiye remained the world’s fifth-largest exporter of textiles and raw materials in 2025, according to figures cited in recent industry reporting. It held an estimated 3.3% share of a global export market valued at approximately $349.3 billion.
How could Turkish manufacturers respond?
Turkish exporters have several possible responses, but each carries a cost.
Some companies may absorb part of the US tariff to retain their customers. This would protect sales volumes but reduce already narrow profit margins.
Others may raise their prices and focus on products where quality, speed, flexibility and proximity matter more than the lowest possible price. Premium fabrics, technical textiles, sustainable manufacturing and short production runs may offer stronger protection from price-based competition.
Manufacturers could also pursue new markets or increase their presence in Europe, the Middle East and North Africa. Diversification, however, cannot immediately replace established American customers.
Exporters should also review the US customs classification of each product and determine whether any official exemption applies. Classification decisions should be based on the specific product and current US customs rules, not on general industry averages.
Türkiye seeks relief from Washington
Turkish trade and foreign ministry officials are reportedly communicating with their American counterparts about the measure.
Türkiye’s textile industry wants the United States to reconsider the 12.5% rate and provide Turkish exporters with treatment closer to that granted to European suppliers.
Another possible objective would be access to a tariff-rate quota similar to those planned for Bangladesh, Cambodia, Indonesia and Malaysia.
No official reduction or special textile quota for Türkiye had been announced at the time of publication.
The outcome of negotiations with Washington could influence future investment, employment and export plans across the Turkish textile and apparel sector.
Without relief, US tariffs on Türkiye could further weaken manufacturers already struggling with rising domestic costs. The greatest risk is not simply that import duties increase, but that American buyers shift orders toward countries offering lower total costs.
Frequently asked questions
Who imposed the new tariff?
The United States imposed the tariff on covered products imported from Türkiye.
Did Türkiye impose a tariff on American textiles?
No. This article concerns an additional US import tariff applied to covered Turkish goods entering the American market.
How high is the new US tariff?
The additional Section 301 tariff for Türkiye is 12.5%. It is generally added to the normal US customs duty applicable to the product.
Does every Turkish garment face a 29% tariff?
No. Approximately 29% is an industry estimate for the combined burden on certain products. The exact total depends on the product’s customs classification and applicable exemptions.
When did the US tariff take effect?
It took effect at 12:01 a.m. US Eastern Time on July 24, 2026, subject to specified exemptions and transitional rules.
Why did the United States introduce it?
The United States linked the measure to a Section 301 investigation concerning whether trading partners prohibit and effectively prevent imports involving forced labor.
Can the tariff be revised?
Yes. The United States can modify the tariff, exclusions or quota arrangements. Türkiye can also negotiate with Washington or take policy steps addressing the issues behind the Section 301 action.
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