Bulgarian Clothing Manufacturers Seek New Markets Amid Rising U.S. Tariffs

Bulgarian garment manufacturers are being forced to seek new markets due to the higher tariffs on industrial goods imposed by U.S. President Donald Trump. Industry representatives fear that the ongoing trade war may prompt China to redirect its exports to Europe, further exacerbating price dumping in the textile and leather goods sectors.

At the production facilities of Miglena Hristova, 15,000 garments are manufactured each month—90% of them for well-known French fashion brands. However, due to market disruptions and the restructuring caused by Trump's tariffs, orders have decreased.

Miglena Hristova, owner of a garment manufacturing company and board member of the Bulgarian Association of Textile, Apparel, and Leather (BATOK), explained:

“Europe is stagnating, and our clients are placing fewer and lower-priced orders because we are not competitive compared to Africa, where manufacturers have the know-how and produce at much lower prices than we can.”

The right move, according to the industry, is to regain European competitiveness and look for new markets.

“We’re personally shifting our focus to the Scandinavian markets and are looking for clients in Japan, Canada, and Australia. Our French brand partners are hoping to expand in Australia, as it’s becoming increasingly difficult to sell in the U.S. due to rising costs. Meanwhile, there are no restrictions on Chinese imports into Europe,” Hristova noted.

According to Miglena Hristova, there is a real risk of market flooding by cheap Chinese imports.

“A blazer on a Chinese website costs just 12 BGN. We cannot produce a blazer for 12 BGN, especially when shipping from Sofia to Ruse alone costs 30 BGN,” Hristova added.

The higher import duties will impact Bulgarian manufacturers indirectly, as part of European supply chains. As such, it is too early to predict whether job losses will follow, said the Ruse Chamber of Commerce and Industry.

Milen Dobrev, Executive Director of the Chamber, stated:

“There will definitely be a filtering process—a kind of natural selection within the business environment. But in such a dynamic situation, it's essential that companies avoid emotional responses and instead rely on precise economic analysis. We're helping businesses find new markets and adapt to disrupted supply chains, so they can become more resilient.”

Nevertheless, businesses are also calling for state measures to reduce administrative burdens and bureaucracy, and to help retain employees in a challenging and evolving market environment.