Taipei: A Taiwanese businessman based in Egypt has expressed optimism about the opportunities presented by U.S. President Donald Trump’s tariff policy, highlighting Egypt as a potential beneficiary.

According to Focus Taiwan, Lo He-chieh, who founded Elite Merchandising Corp. (EMC) in 2005, reported a surge in orders following Trump’s announcement of new reciprocal tariffs on April 2. The tariffs, which were later postponed, would impose a 10 percent import duty on Egyptian goods, significantly lower than the 32 percent planned for Taiwanese products.

Lo credits the increased demand to the strategic location of his factories in Alexandria, one of 20 Qualifying Industrial Zones (QIZs) in Egypt. These zones benefit the textile and apparel industry by offering exemption from U.S. tariffs, provided 11.7 percent of the product value originates from Egypt, as per the QIZ protocol signed by Egypt, the United States, and Israel in 2004.

Lo’s decision to relocate to Egypt was influenced by the QIZ initiative. His factories’ garment values include 10.5 percent cloth from Israel and nearly 90 percent materials and equipment from Asia, complying with the protocol requirements.

FASH455, a platform focused on global apparel and textile trade, has indicated that U.S. import tariff rates for textiles and apparel have fluctuated between 13 and 15 percent from 2010 to 2024, in contrast to the 1 to 3 percent average for other goods. This disparity highlights the advantage Egyptian products have under the QIZ agreement.

Textiles and apparel, as one of Egypt’s oldest industries, account for 12 to 15 percent of the country’s export value and are the third-largest source of foreign exchange. Approximately 70 percent of the 600 factories in Egypt’s QIZs are dedicated to these sectors.

Lo’s company, EMC, has expanded rapidly, establishing one factory per year and becoming the largest automated garment manufacturer among Egypt’s nearly 7,000 garment factories. Lo attributes the success to Egypt’s young and affordable labor force and its strategic geographic position, which facilitates trade with Europe, Asia, and Africa.

Lo remains optimistic about Egypt’s business potential and encourages Taiwanese entrepreneurs to invest in the country. Despite his call for forming a supply chain in Egypt, he notes that the number of Taiwanese firms there remains limited.