Latest news with #T&CGarments
Newsweek
02-05-2025
- Business
- Newsweek
Trump Tariffs Could Offer Lifeline for World's Finest Cotton
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Egypt, long recognized for its premium cotton, could gain ground in the global market as a result of President Donald Trump's tariff war with China, industry experts say. Newsweek has reached out to the Egyptian Agriculture Ministry for comment. Why It Matters New U.S. tariffs on Chinese textiles, introduced under the Trump administration in early 2025, could offer a much-needed lifeline to Egypt's legacy extra-long staple cotton, that risks fading from the global scene as a result of the country's inability to keep pace with shifting global supply chains. Although tariffs were also imposed on Egypt and other cotton producers, those are lower than on China. While U.S. Pima cotton remains a high-quality alternative, the loss of Egypt's long-staple variety would accelerate brands' shift towards less expensive more readily available synthetics and lower-grade imports. A picture taken on September 13, 2018 shows an Egyptian farmer working in a cotton field in the Egyptian Nile Delta town of Kafr el-Sheikh. A picture taken on September 13, 2018 shows an Egyptian farmer working in a cotton field in the Egyptian Nile Delta town of Kafr el-Sheikh. KHALED DESOUKI/AFP/Getty Images What To Know Egypt's cotton cultivation has suffered in recent years, as has its textile production. But the Egyptian government is pushing to modernize textile manufacturing; a policy strategically aligned to expand the industry due to the U.S. imposing much higher tariffs on other countries. "The US didn't impose tariffs on Egypt alone. It imposed much higher tariffs on other countries. This gives Egypt a very good opportunity to grow," Magdy Tolba, chairman of the Egyptian Turkish joint venture T&C Garments, told Reuters. Egypt is seeking to redress a trend outlined by the U.S. Department of Agriculture in April 2025 that raised questions over the long-term viability of its premium varieties—especially extra-long staple (ELS) and fine long-staple (LS) cottons. In recent years, some luxury brands have shifted from Egyptian premium cotton to alternative sources such as U.S. Pima cotton or high-grade synthetics due to supply instability and quality concerns. A 2016 controversy over the mislabeling of '100% Egyptian cotton' by Indian textile company Welspun—whose products were sold by Walmart, Target, and Bed Bath & Beyond—damaged the global reputation of Egyptian cotton, prompting the government to enforce stricter quality control measures. What People Are Saying Magdy Tolba, chairman of the Egyptian Turkish joint venture T&C Garments told Reuters: "The US didn't impose tariffs on Egypt alone. It imposed much higher tariffs on other countries. This gives Egypt a very good opportunity to grow." Egypt's Prime Minister Mostafa Madbouly in cabinet meeting: "The world is currently witnessing a global war by all standards; it is not a military war but a comprehensive trade and economic war using all possible weapons. "This situation, while presenting a challenge, also includes some opportunities. Several international reports have indicated that some countries are likely to benefit from these challenges, including Egypt in the sectors of industry and investment." What Happens Next As Egypt adjusts domestic policies to navigate shifting cotton dynamics, questions remain whether competitors will move fast enough to take advantage of the trade gap created by U.S. tariffs.
Zawya
08-04-2025
- Business
- Zawya
Brazil, Egypt and Singapore among potential winners from tariff onslaught
Days after U.S. President Donald Trump's announcement of sweeping tariffs shocked multiple U.S. trading partners and global markets, a handful of countries are emerging as potential winners although the risk of a tariff-induced recession will limit the upside. With longtime allies and close U.S. trading partners including the European Union, Japan and South Korea among those hardest hit - with tariffs of 20% or more - rivals from Brazil to India and Turkey to Kenya see a silver lining. Brazil is among the economies that escaped with the lowest "reciprocal" U.S. tariff of 10%. In addition, the agricultural giant could benefit from China's retaliatory tariffs likely to hit U.S. farm exporters. The latest U.S. tariffs are due to come into effect on April 9. Brazil, as a net importer of goods from the United States, exemplifies the way some countries could take advantage of the trade war that Trump is waging primarily against China and other major exporters that run trade surpluses with the U.S. Morocco, Egypt, Turkey and Singapore, all of which have trade deficits with the U.S., could find an opportunity in the distress of those, like Bangladesh and Vietnam, which both run big surpluses and have been hit hard by Trump. While the latter two are grappling with expected tariffs of 37% and 46%, respectively, the former, like Brazil and most of its neighbours, will squeak by with 10% each - more of a slap on the wrist in the new Trump world order. "The US didn't impose tariffs on Egypt alone," said Magdy Tolba, chairman of Egyptian-Turkish joint venture T&C Garments. "It imposed much higher tariffs on other countries. This gives Egypt a very good opportunity to grow." Tolba listed China, Bangladesh and Vietnam as key competitors to Egypt in textiles. "The opportunity is in plain sight," he said. "We just need to grab it." Turkey, whose iron, steel and aluminium exports took a hit from earlier U.S. tariffs, now stands to benefit as other global traders endure even higher levies. Trade Minister Omer Bolat has called the tariffs on Turkey the "best of the worst" given the rates imposed on many other countries. NEGATIVE NOTICE Similarly, Morocco, which has a free trade agreement with the U.S., could emerge as a relative beneficiary of the pain of both the EU and erstwhile Asian powerhouses. "The tariff is an opportunity for Morocco to attract investments by foreign investors willing to export to the U.S., given the comparatively low 10% tariff," said one former government official, speaking on condition of anonymity. Still, the official and others noted that hazards loom, with the danger that big recent Chinese investments, including $6.5 billion from Gotion High Tech for what would be Africa's first gigafactory, could attract negative attention from Trump. Rachid Aourraz, an economist with the Moroccan Institute for Policy Analysis (MIPA), an independent think tank in Rabat, noted that the country's aerospace and fertiliser industries could still take a hit. "While the direct impact seems limited given that the U.S. is not a major market for Morocco's exports, the shockwaves created by the tariffs and the spectre of recession could impact Moroccan economic growth," he said. Kenya, with which the U.S. enjoys a trade surplus, may also see a mixed blessing from a relatively glancing tariff blow. Textile producers in particular expressed hope they could gain a comparative advantage against competitors in countries harder hit by tariffs. GREATER MISERY Similar concerns are playing out in Singapore, where the benchmark Straits Times Index on Monday slumped 7.5% in its largest fall since 2008 and extended its decline on Tuesday. While the city-state might benefit from some investment flows as manufacturers seek to diversify, they would still be subject to substantial manufacturing and local content rules, said OCBC economist Selena Ling. "The absolute story is there are no 'winners' if the US and/or global economy hits a hard stop or recession," she said. "It's all relative." Maybank economist Chua Hak Bin added: "Singapore cannot win in global trade war, given the heavy reliance on trade." India, despite a tariff of 26%, is still looking for opportunity in its Asian rivals' greater misery. According to an internal government assessment shared with Reuters, the sectors where India can gain market share in shipments to the U.S. include textiles, apparel and footwear. Soon after the tariff announcement, the Indian trade ministry said it was "studying the opportunities that may arise due to this new development in the US trade policy." India is also hoping to get a bigger share of Apple's iPhone manufacturing from China because of the tariff differential, though the 26% tariff could still make the phone substantially more expensive in the U.S. In South America, where exports remain focused on commodities from copper to grains, there are hopes the U.S. tariff turmoil could revive talks on a long-delayed trade deal between the four-member Mercosur bloc and the European Union. Brazil could be the top beneficiary of any such move, but even beyond that, trends during Trump's first term, when Brazilian soybeans and corn growers enjoyed bumper sales as China froze out U.S. farmers, could now be replicated. Elsewhere in Latin America, Mexico, which has previously been on the receiving end of Trump's wrath, has also emerged relatively unscathed, with most of its commerce shielded by the USMCA trade accord negotiated during Trump's first term, noted Graham Stock, a senior emerging market strategist at RBC BlueBay. "But Mexican assets are struggling more than others because Mexico is so exposed to the US economy, and at the end of the day the Trump trade policy is a huge act of self-harm to the U.S. economy," he added. (Writing By Christian Plumb; Additional reporting by Aftab Ahmed, Shivangi Acharya, Jonathan Spicer, Duncan Miriri and Marcela Ayres; Editing by Kate Mayberry)
Yahoo
08-04-2025
- Business
- Yahoo
Brazil, Egypt and Singapore among potential winners from tariff onslaught
By Mohamed Ezz, Ahmed Eljechtimi and Xinghui Kok (Reuters) - Days after U.S. President Donald Trump's announcement of sweeping tariffs shocked multiple U.S. trading partners and global markets, a handful of countries are emerging as potential winners although the risk of a tariff-induced recession will limit the upside. With longtime allies and close U.S. trading partners including the European Union, Japan and South Korea among those hardest hit - with tariffs of 20% or more - rivals from Brazil to India and Turkey to Kenya see a silver lining. Brazil is among the economies that escaped with the lowest "reciprocal" U.S. tariff of 10%. In addition, the agricultural giant could benefit from China's retaliatory tariffs likely to hit U.S. farm exporters. The latest U.S. tariffs are due to come into effect on April 9. Brazil, as a net importer of goods from the United States, exemplifies the way some countries could take advantage of the trade war that Trump is waging primarily against China and other major exporters that run trade surpluses with the U.S. Morocco, Egypt, Turkey and Singapore, all of which have trade deficits with the U.S., could find an opportunity in the distress of those, like Bangladesh and Vietnam, which both run big surpluses and have been hit hard by Trump. While the latter two are grappling with expected tariffs of 37% and 46%, respectively, the former, like Brazil and most of its neighbours, will squeak by with 10% each - more of a slap on the wrist in the new Trump world order. "The US didn't impose tariffs on Egypt alone," said Magdy Tolba, chairman of Egyptian-Turkish joint venture T&C Garments. "It imposed much higher tariffs on other countries. This gives Egypt a very good opportunity to grow." Tolba listed China, Bangladesh and Vietnam as key competitors to Egypt in textiles. "The opportunity is in plain sight," he said. "We just need to grab it." Turkey, whose iron, steel and aluminium exports took a hit from earlier U.S. tariffs, now stands to benefit as other global traders endure even higher levies. Trade Minister Omer Bolat has called the tariffs on Turkey the "best of the worst" given the rates imposed on many other countries. NEGATIVE NOTICE Similarly, Morocco, which has a free trade agreement with the U.S., could emerge as a relative beneficiary of the pain of both the EU and erstwhile Asian powerhouses. "The tariff is an opportunity for Morocco to attract investments by foreign investors willing to export to the U.S., given the comparatively low 10% tariff," said one former government official, speaking on condition of anonymity. Still, the official and others noted that hazards loom, with the danger that big recent Chinese investments, including $6.5 billion from Gotion High Tech for what would be Africa's first gigafactory, could attract negative attention from Trump. Rachid Aourraz, an economist with the Moroccan Institute for Policy Analysis (MIPA), an independent think tank in Rabat, noted that the country's aerospace and fertiliser industries could still take a hit. "While the direct impact seems limited given that the U.S. is not a major market for Morocco's exports, the shockwaves created by the tariffs and the spectre of recession could impact Moroccan economic growth," he said. Kenya, with which the U.S. enjoys a trade surplus, may also see a mixed blessing from a relatively glancing tariff blow. Textile producers in particular expressed hope they could gain a comparative advantage against competitors in countries harder hit by tariffs. GREATER MISERY Similar concerns are playing out in Singapore, where the benchmark Straits Times Index on Monday slumped 7.5% in its largest fall since 2008 and extended its decline on Tuesday. While the city-state might benefit from some investment flows as manufacturers seek to diversify, they would still be subject to substantial manufacturing and local content rules, said OCBC economist Selena Ling. "The absolute story is there are no 'winners' if the US and/or global economy hits a hard stop or recession," she said. "It's all relative." Maybank economist Chua Hak Bin added: "Singapore cannot win in global trade war, given the heavy reliance on trade." India, despite a tariff of 26%, is still looking for opportunity in its Asian rivals' greater misery. According to an internal government assessment shared with Reuters, the sectors where India can gain market share in shipments to the U.S. include textiles, apparel and footwear. Soon after the tariff announcement, the Indian trade ministry said it was "studying the opportunities that may arise due to this new development in the US trade policy." India is also hoping to get a bigger share of Apple's iPhone manufacturing from China because of the tariff differential, though the 26% tariff could still make the phone substantially more expensive in the U.S. In South America, where exports remain focused on commodities from copper to grains, there are hopes the U.S. tariff turmoil could revive talks on a long-delayed trade deal between the four-member Mercosur bloc and the European Union. Brazil could be the top beneficiary of any such move, but even beyond that, trends during Trump's first term, when Brazilian soybeans and corn growers enjoyed bumper sales as China froze out U.S. farmers, could now be replicated. Elsewhere in Latin America, Mexico, which has previously been on the receiving end of Trump's wrath, has also emerged relatively unscathed, with most of its commerce shielded by the USMCA trade accord negotiated during Trump's first term, noted Graham Stock, a senior emerging market strategist at RBC BlueBay. "But Mexican assets are struggling more than others because Mexico is so exposed to the US economy, and at the end of the day the Trump trade policy is a huge act of self-harm to the U.S. economy," he added. (Writing By Christian Plumb; Additional reporting by Aftab Ahmed, Shivangi Acharya, Jonathan Spicer, Duncan Miriri and Marcela Ayres; Editing by Kate Mayberry) Sign in to access your portfolio
Reuters
08-04-2025
- Business
- Reuters
Brazil, Egypt and Singapore among potential winners from tariff onslaught
April 8 (Reuters) - Days after U.S. President Donald Trump's announcement of sweeping tariffs shocked multiple U.S. trading partners and global markets, a handful of countries are emerging as potential winners although the risk of a tariff-induced recession will limit the upside. With longtime allies and close U.S. trading partners including the European Union, Japan and South Korea among those hardest hit - with tariffs of 20% or more - rivals from Brazil to India and Turkey to Kenya see a silver lining. Brazil is among the economies that escaped with the lowest "reciprocal" U.S. tariff of 10%. In addition, the agricultural giant could benefit from China's retaliatory tariffs likely to hit U.S. farm exporters. The latest U.S. tariffs are due to come into effect on April 9. Brazil, as a net importer of goods from the United States, exemplifies the way some countries could take advantage of the trade war that Trump is waging primarily against China and other major exporters that run trade surpluses with the U.S. Morocco, Egypt, Turkey and Singapore, all of which have trade deficits with the U.S., could find an opportunity in the distress of those, like Bangladesh and Vietnam, which both run big surpluses and have been hit hard by Trump. While the latter two are grappling with expected tariffs of 37% and 46%, respectively, the former, like Brazil and most of its neighbours, will squeak by with 10% each - more of a slap on the wrist in the new Trump world order. "The US didn't impose tariffs on Egypt alone," said Magdy Tolba, chairman of Egyptian-Turkish joint venture T&C Garments. "It imposed much higher tariffs on other countries. This gives Egypt a very good opportunity to grow." Tolba listed China, Bangladesh and Vietnam as key competitors to Egypt in textiles. "The opportunity is in plain sight," he said. "We just need to grab it." Turkey, whose iron, steel and aluminium exports took a hit from earlier U.S. tariffs, now stands to benefit as other global traders endure even higher levies. Trade Minister Omer Bolat has called the tariffs on Turkey the "best of the worst" given the rates imposed on many other countries. NEGATIVE NOTICE Similarly, Morocco, which has a free trade agreement with the U.S., could emerge as a relative beneficiary of the pain of both the EU and erstwhile Asian powerhouses. "The tariff is an opportunity for Morocco to attract investments by foreign investors willing to export to the U.S., given the comparatively low 10% tariff," said one former government official, speaking on condition of anonymity. Still, the official and others noted that hazards loom, with the danger that big recent Chinese investments, including $6.5 billion from Gotion High Tech ( opens new tab for what would be Africa's first gigafactory, could attract negative attention from Trump. Rachid Aourraz, an economist with the Moroccan Institute for Policy Analysis (MIPA), an independent think tank in Rabat, noted that the country's aerospace and fertiliser industries could still take a hit. "While the direct impact seems limited given that the U.S. is not a major market for Morocco's exports, the shockwaves created by the tariffs and the spectre of recession could impact Moroccan economic growth," he said. Kenya, with which the U.S. enjoys a trade surplus, may also see a mixed blessing from a relatively glancing tariff blow. Textile producers in particular expressed hope they could gain a comparative advantage against competitors in countries harder hit by tariffs. GREATER MISERY Similar concerns are playing out in Singapore, where the benchmark Straits Times Index on Monday slumped 7.5% in its largest fall since 2008 and extended its decline on Tuesday. While the city-state might benefit from some investment flows as manufacturers seek to diversify, they would still be subject to substantial manufacturing and local content rules, said OCBC economist Selena Ling. "The absolute story is there are no 'winners' if the US and/or global economy hits a hard stop or recession," she said. "It's all relative." Maybank economist Chua Hak Bin added: "Singapore cannot win in global trade war, given the heavy reliance on trade." India, despite a tariff of 26%, is still looking for opportunity in its Asian rivals' greater misery. According to an internal government assessment shared with Reuters, the sectors where India can gain market share in shipments to the U.S. include textiles, apparel and footwear. Soon after the tariff announcement, the Indian trade ministry said it was "studying the opportunities that may arise due to this new development in the US trade policy." India is also hoping to get a bigger share of Apple's (AAPL.O), opens new tab iPhone manufacturing from China because of the tariff differential, though the 26% tariff could still make the phone substantially more expensive in the U.S. In South America, where exports remain focused on commodities from copper to grains, there are hopes the U.S. tariff turmoil could revive talks on a long-delayed trade deal between the four-member Mercosur bloc and the European Union. Brazil could be the top beneficiary of any such move, but even beyond that, trends during Trump's first term, when Brazilian soybeans and corn growers enjoyed bumper sales as China froze out U.S. farmers, could now be replicated. Elsewhere in Latin America, Mexico, which has previously been on the receiving end of Trump's wrath, has also emerged relatively unscathed, with most of its commerce shielded by the USMCA trade accord negotiated during Trump's first term, noted Graham Stock, a senior emerging market strategist at RBC BlueBay. "But Mexican assets are struggling more than others because Mexico is so exposed to the US economy, and at the end of the day the Trump trade policy is a huge act of self-harm to the U.S. economy," he added.
Mada
28-01-2025
- Business
- Mada
Authorities arrest 26 workers as thousands strike for fair pay at supplier for international brands
Authorities in Egypt arrested 26 people on Saturday who work for the east Cairo factories of T&C Garments, a Turkish-Egyptian clothing manufacturer that supplies goods to global brands including Levis, UNIQLO and Tommy Hilfiger. Around 6,000 employees at T&C Garments' Obour City complex began a strike for fairer wages at the beginning of the year. As the cost of living increases, they demand that the company increase bonuses, commissions and meal allowances for workers, who currently take home less than minimum wage per month. Four workers at the T&C Garments factory told Mada Masr on condition of anonymity that security forces arrested 26 of their colleagues from their homes over the weekend. Among those arrested was Ahmed Hassan Abdel Aziz from the Zawamel village in the Sharqiya Governorate, according to one of the company employees from the same village, who described authorities arresting his colleague from his home on Saturday evening. A larger group of police and Central Security Forces personnel is now stationed outside the factory premises in the Industrial Zone at Obour City, the sources said. Only workers from the packing, laundry and cutting departments were admitted to the premises for Sunday's shift at the company, which suspended daily transport into the industrial zone for night shift workers as soon as the strike began and did the same for morning shift workers in most departments shortly afterward. When workers arrived at the factory on Sunday, they gathered in the yard in front of the administration office, where they declared they would continue their strike until their demands were met. 'The company is trying to divide us to break the strike,' one worker told Mada Masr. T&C's executive manager presented an offer to the workers on Sunday, another laborer said. 'They offered us a 17 percent bonus increase, which we rejected. We want 50 percent.' The thousands of factory workers launched their strike on January 16, demanding a 50 percent increase in their annual bonus to cope with rising living costs, a raise in meal allowances from LE600 to LE1,200, an implementation of the minimum wage, permission for discretionary leave and paid public holidays, in accordance with the labor law. Workers at the company currently take home between LE4,000 and LE5,000 per month, substantially below the minimum wage for the private sector, which is set at LE6,000. Bonuses, which the laborers expected to receive in the third week of January, are also yet to be paid out, one worker said. They are also demanding that the company improve its on-site health clinic, which is poorly equipped and offers little more than painkillers, they say. Workers who fall ill or are injured on the job must seek treatment outside the company at their own expense, and if they have to take leave for health reasons, they are only paid a quarter of their daily wage, workers told Mada Masr last week. The strike is further calling for the dismissal of HR manager Mohamed Abdel Rahman for insulting workers. T&C Garments, a partnership between Egypt's Tolba Group and Turkey's Tay Group, manufactures ready-made clothing for well known brands, including Levis, UNIQLO and Tommy Hilfiger. The factory operates under the Qualified Industrial Zones (QIZ) agreement, a protocol established by the US in 1996 to build economic ties between Israel and its neighbors, which requires that Egyptian products include a 10.5 percent component to enter the US market. The company exports 70 percent of its production to the US and the rest to Europe.
