“Turkey’s Tariff Edge: Cliff Hanger or Easy Road Ahead?”, 25 August 2025

…In the new tariff rates announced on Aug.1, the reciprocal rate applicable to Turkey’s trade with the U.S. was set at 15 percent. “It provides Turkey with a significant advantage compared to its competitors,” Mustafa Gültepe, president of the Istanbul Apparel Exporters Association told Sourcing Journal.

“(…) The increasing tariff burden on these Asia-based countries compels U.S. buyers to diversify their supply chains; in this regard, Turkey stands out with its quality, reliability, and geographical advantages.”

Although the advantage gap with the European Union has narrowed, Gültepe said Turkey still has the opportunity to capture volume lost by Asian countries while competing in high value-added production similar to the EU.

…The report noted that significant economic revitalization is expected in Istanbul, Izmir, Denizli, Kahramanmaraş, and Gaziantep, where Turkey’s apparel production is concentrated. With Istanbul alone accounting for 40 percent of total production, regional spillovers are expected to be substantial.

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But analysts caution it may not yet be time to celebrate.

The economy is still grappling with double-digit inflation and renewed worker protests following a mid-year freeze in the minimum wage. A U.S. human rights report published this month, scrutinizing labor rights and freedom of association, has also prompted closer attention from global brands and retailers keen to manage reputational risks.

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“Employers used threats, violence, and layoffs in unionized workplaces. Unions stated antiunion discrimination occurred regularly across sectors. Manufacturing and service-sector union organizers reported private-sector employers sometimes ignored the law and dismissed workers to discourage union activity. Many employers hired workers on revolving contracts of less than a year’s duration, making them ineligible for equal benefits or bargaining rights,” the report said.

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