kathimerini.gr
US Tariffs Hit Greek Clothing Exports
New US tariffs on EU clothing and footwear, starting April 5th, increase costs for Greek manufacturers exporting to the US, threatening €768 million in clothing exports and potentially shifting production to cheaper locations like Turkey, Morocco, and Egypt.
- What are the immediate economic consequences for Greek clothing manufacturers due to the new US tariffs?
- A 10% additional tariff on EU clothing and footwear imported into the US, implemented on April 5th, significantly impacts Greek businesses. Dozens of Greek companies, primarily in Northern Greece, produce clothing for European brands that export to the US, facing tariffs now at 26.5%, rising to 36.5% on July 9th unless negotiations succeed. This affects both businesses producing for European and American brands.
- What are the long-term implications of these tariffs on the geographical distribution of clothing production globally?
- The US tariffs will likely accelerate the shift of clothing production away from Europe. While China and Vietnam might lose some competitiveness, countries like India, Bangladesh, Turkey, and Egypt are poised to benefit. This reinforces existing trends of increased Asian textile imports into the EU, which doubled in volume from 2000 to 2022.
- How do the new US tariffs affect the competitiveness of the Greek textile and clothing industry compared to other countries?
- The new tariffs exacerbate the challenges faced by the Greek textile and clothing industry, already struggling with energy price increases. Greek exports of clothing and textiles totaled €1.67 billion in 2024, with €768 million in clothing exports, 75% within the EU. The tariffs threaten exports to the US and increase competition from Turkey, Morocco, and Egypt, which face lower tariffs.
Cognitive Concepts
Framing Bias
The article frames the situation as a significant crisis for the Greek textile industry, emphasizing the negative economic consequences of the tariffs. The headline and opening paragraph immediately establish this negative tone, which is reinforced throughout the piece. While the article presents some facts, the emphasis on the negative impacts creates a sense of urgency and potentially overstates the overall severity of the situation. The lack of balance in the framing means the reader is presented with a one-sided perspective.
Language Bias
The article uses strong language to describe the situation, referring to a "Golgotha" (a place of suffering) and describing the tariffs as a "new blow" to the industry. These words add an emotional weight and intensify the negative portrayal. While such language might be appropriate within a context of emphasizing the severity of the situation for Greek businesses, more neutral alternatives such as "challenges" or "significant economic disruption" could be used to reduce the emotionally charged tone and allow a more balanced perspective.
Bias by Omission
The article focuses heavily on the negative impacts of the tariffs on Greek businesses and the European textile industry. While it mentions that China and Vietnam might lose some competitiveness, it doesn't delve into the potential consequences for those countries or explore alternative solutions for them. It also omits discussion of potential long-term economic effects beyond the immediate impact on businesses, and doesn't explore the reasoning behind the US's imposition of these tariffs. The perspective of US consumers and the potential justification for the tariffs are missing.
False Dichotomy
The article presents a somewhat false dichotomy by framing the situation as a simple choice between European and non-European production. It highlights the increased competitiveness of Turkey, Morocco, and Egypt, but doesn't fully explore the complexities of global supply chains and the range of factors that influence production location, including labor costs, environmental regulations, and consumer demand. It oversimplifies the choices facing businesses, implying that they can simply switch to cheaper producers, without accounting for other factors influencing these decisions.
Sustainable Development Goals
The new tariffs imposed by the US on European clothing and footwear imports negatively impact the Greek textile and clothing industry. Many Greek companies produce garments for European brands that export to the US, and the tariffs threaten their competitiveness and profitability, potentially leading to job losses and reduced economic growth in the region. The article highlights that Greek exports of clothing amounted to €768 million in 2024, and this sector is directly threatened by these tariffs. The increased competitiveness of producers in countries like Turkey, Morocco, and Egypt further exacerbates the negative impact on Greek economic growth.