Costs surge for Turkish clothing makers amid textile sector support

Costs surge for Turkish clothing makers amid textile sector support

This industry supplies heavyweight European brands such as H&M, Mango, Adidas, Puma, and Inditex.

Turkish clothing manufacturers, who are the third-largest suppliers of apparel to Europe, are confronted with increased production costs and the risk of lagging further behind their Asian competitors due to the government’s recent imposition of higher taxes on textile imports. Last week, Ankara raised tariffs by 30-100 per cent on numerous incoming textile products, with the aim of supporting local yarn and fabric manufacturers that had sought assistance in countering a surge in cheaper imports.

Officials in the apparel sector assert that the newly implemented taxes are placing considerable pressure on the industry, which stands as one of Turkey’s major employers. This industry supplies heavyweight European brands such as H&M, Mango, Adidas, Puma, and Inditex.

Representatives from the sector suggest that job cuts might be on the horizon as import costs increase, and Turkish producers lose market share to competitors like Bangladesh and Vietnam. Although exporters can technically request exemptions from the tax, sources within the industry indicate that the exemption process is both expensive and time-consuming and, in reality, does not prove effective for many companies.

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