Fadel Marzouk, Chairperson of the Apparel Export Council of Egypt (AECE), stated that the 10% tariff recently imposed by the United States on clothing imports presents a strategic opportunity for Egypt to expand its presence in the US market.
Marzouk explained that Egypt benefits from the Qualifying Industrial Zone (QIZ) agreement, which allows its products to enter the US duty-free. This tariff exemption gives Egyptian apparel exports a unique advantage over competitors such as China, India, Vietnam, Bangladesh, and Cambodia, which are all subject to the new duties. With this preferential access, Egypt remains the most competitively positioned supplier in terms of both price and quality.
“Egypt has a real opportunity to increase its exports to the United States by 25% to 30% in the near term,” Marzouk said, highlighting that the US was already the top destination for Egyptian ready-made garments during the first two months of 2025, with exports totaling $193m.
He noted that the apparel sector had anticipated these global trade shifts since the early days of former US President Donald Trump’s first term and has since maintained a strategy of consistent annual growth in exports.
Marzouk also revealed plans to establish an integrated textile city in Minya Governorate. The project, expected to attract over $2bn in investments, aims to significantly enhance Egypt’s production capabilities and expand its export potential—particularly to the US market.
“At AECE, we’ve developed a comprehensive strategy to boost the sector’s competitiveness,” Marzouk said. “This includes attracting foreign direct investment, expanding domestic manufacturing, optimizing supply chains, and increasing export volumes.”
He emphasized that the 90-day grace period announced by the United States for tariff negotiations presents a critical window of opportunity. Even if the US lowers tariffs for other countries after this period, Egypt will retain its competitive edge under the QIZ agreement.
Marzouk concluded by pointing to the strong government support for the ready-made garments industry, noting that a major textile city covering 5.5 million square meters is expected to be launched soon. This initiative is projected to drive apparel exports to $12bn by 2031.
