Turkey textile industry crisis

In late July 2026 Turkish politicians began publicly highlighting the mounting difficulties faced by the nation’s textile sector. On 21 July, the CHP’s İzmir provincial chair visited a local factory, lecturing the government on rising production costs, energy bills and green‑transition expenses that were prompting firms to consider relocation to North Africa and Southeast Asia. Simultaneously, AK Party representatives toured an automotive‑defence parts manufacturer, emphasizing the sector’s role in regional employment and national industry.

A week later, the scale of the problem became starkly apparent. A Yeni Parti MP reported that the textile and ready‑garment industry had shed more than 500,000 jobs, with around 10,000 firms closing and export revenues falling from $21 billion to $16 billion. He noted a drop in global market share below 3 percent and a loss of roughly 35 percent of the sector’s capacity. A parliamentary proposal to investigate the crisis was rejected by the ruling AKP and nationalist MHP, leaving the industry without a formal inquiry. The MP also blamed a newly imposed 12.5 percent U.S. export tax and the lack of a response from the U.S. Trade Representative for exacerbating the downturn.