How Trump’s Tariffs Are Reshaping the Denim Industry

Will U.S. Brands Shift Production to Turkey and Egypt?

The denim industry has long been a cornerstone of American fashion, but shifting trade policies—especially those enacted during Donald Trump’s presidency—have fundamentally altered the global denim supply chain. With increased tariffs on Chinese-made textiles and garments, American denim brands are actively seeking more cost-effective and politically stable production partners. As a result, Turkey and Egypt are emerging as key players in the global denim manufacturing arena.

The Tariff Impact on Denim

In 2018, the Trump administration imposed steep tariffs on billions of dollars' worth of Chinese goods, including textiles and denim garments. These duties, in some cases exceeding 25%, increased production costs for U.S.-based brands that had long relied on China for manufacturing.

Denim brands like Levi’s, Wrangler, and Lee, which once benefited from China’s efficiency and scale, faced a tough decision: absorb the increased costs, pass them on to consumers, or seek new manufacturing hubs outside China. For many, the solution was clear—diversify the supply chain.

Why Turkey and Egypt Are Attracting U.S. Denim Brands

Both Turkey and Egypt offer compelling advantages that make them ideal alternatives for denim production:

1. Geographic Proximity and Logistics

Turkey’s strategic location—bridging Europe and Asia—offers short lead times and reduced shipping costs for both European and U.S. markets. Meanwhile, Egypt’s access to the Suez Canal and its expanding port infrastructure make it a logistical gem for international trade.

2. Skilled Workforce and Denim Expertise

Turkey has a long-standing textile tradition and is known for its high-quality denim fabric production. Brands such as Mavi and Isko have placed Turkey on the map as a premium denim manufacturer. Egypt, on the other hand, benefits from its Cotton legacy, especially with long-staple Egyptian cotton, making it an ideal base for high-end denim garments.

3. FTA Advantages

Egypt is part of the QIZ (Qualifying Industrial Zones) agreement with the U.S., allowing duty-free exports of garments. This gives American brands a financial incentive to shift production to Egypt. Turkey, while not under a direct free trade agreement with the U.S., is a member of the EU Customs Union, making it a top choice for brands that sell in both Europe and North America.

4. Sustainability and Innovation

Both countries are investing heavily in sustainable denim production. Turkish factories are leading in waterless dyeing technologies and eco-friendly denim washes. Egyptian facilities are modernizing with a focus on clean energy and ethical labor practices—two vital criteria for modern conscious consumers.

Will the Shift Last?

With the Biden administration maintaining many of Trump’s tariffs, the denim industry’s pivot away from China shows no signs of slowing. As brands look to future-proof their supply chains, Turkey and Egypt are becoming central to long-term sourcing strategies. Rising costs in Asia, coupled with supply chain disruptions and a focus on ethical production, are reinforcing the appeal of these two nations.

Conclusion

The denim industry is at a turning point, and U.S. brands are looking east—just not as far east as before. With their combination of expertise, favorable trade conditions, and strategic locations, Turkey and Egypt are poised to become global denim powerhouses in the post-tariff era. For American denim companies seeking agility, quality, and cost-efficiency, the answer may lie along the Mediterranean rather than the Pacific.