The Chairman of the Turkish Footwear Manufacturers Association (TASD), Berke İçten, announced that despite additional tariffs, footwear imports have continued to rise while exports are declining.
According to İçten, during the first seven months of 2025, footwear imports increased by 5.8% in value to reach $1.049 billion, while exports fell by 14.6% to $612 million. This resulted in a foreign trade deficit of $437 million.
Speaking at the opening of the AYMOD Footwear Fashion Fair, İçten highlighted the challenges the industry is facing under import pressure but expressed optimism that new collaborations could emerge through the fair. This year, 250 companies and 600 brands are participating, with 15,000 visitors expected from 60 countries. More than 600 qualified buyers from abroad had their travel and accommodation expenses covered by TASD.
“Our industry will overcome these difficulties, as long as equal competition conditions are ensured,” İçten said.
Government and Industry Support
Deputy Trade Minister Özgür Volkan Ağar underlined that AYMOD contributes to Turkey’s export power and noted that the Ministry is providing 50% stand support to participants. Istanbul Governor Davut Gül pointed out that global competition has intensified in labor-intensive sectors after the pandemic, and that companies persevering through the current challenges will benefit in the long term.
Istanbul Chamber of Industry (ISO) Chairman Erdal Bahçıvan emphasized that the private sector’s problems have reached a stage where they can no longer be endured with “patience alone.” Meanwhile, Istanbul Leather and Leather Products Exporters’ Association (IDMIB) Chairman Güven Karaca called for a special financing package for labor-intensive industries.
Trade Balance Turns Negative
İçten recalled that Turkey had been running a trade surplus in footwear until three years ago.
“In 2022, we achieved our highest export figure in history with $1.3 billion, but the trend has reversed. In 2024, the sector posted a $550 million trade deficit, and we fear the deficit may reach $700 million by the end of this year,” he said.
He particularly criticized the influx of millions of pairs of shoes through China-based e-commerce platforms, which he said are damaging the domestic industry.
High Production Costs and Structural Issues
İçten stressed that production costs in Turkey are significantly higher than in rival countries.
“For example, a pair of shoes produced for $12 in Indonesia or Vietnam costs $20 to manufacture in Turkey. A large part of this gap stems from raw materials and sub-industry inputs. Materials such as soles, uppers, and synthetic leather, which are not produced domestically, are imported with high tariffs. These taxes must be lifted, otherwise, we fall behind in global competition,” he explained.
Rise of Unregistered Production
The TASD Chairman also drew attention to the growing problem of unregistered production. He stated that 4 out of every 10 shoes sold in Turkey are counterfeit or produced off the books, causing the state to lose at least $1 billion in tax revenues annually.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök