Faced with rising trade barriers in the United States and Southeast Asia, a growing number of Chinese manufacturers are relocating operations to Egypt, seeking a more stable and cost-effective base to maintain access to Western markets. The shift, which has accelerated since early 2025, is driven by U.S. tariffs that now affect a wide range of goods produced in both China and Southeast Asia. Egypt’s comparatively low import duties, favorable trade balance with the United States, and strategic geographic position have made it an increasingly attractive destination for investors seeking to navigate a turbulent global trade environment. This shift began under the Trump administration in early 2025, which levied sweeping tariffs on a wide range of goods produced in both China and Southeast Asia. Many firms initially shifted production to Southeast Asia. In April, steep duties were extended on Chinese products, with tariffs reaching as high as 145 percent on some Chinese goods.  Although the headline tariff rate has been reduced to 10 percent, a significant drop from the previous high of 145 percent, additional trade duties keep the overall effective tariff on most Chinese products above 30 percent. Though…

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