If a no-deal Brexit deal goes ahead, UK companies will have to decide if the advantages of sourcing in Turkey – speed and flexibility – outweigh the additional costs 12 per cent tariffs would entail. New tariffs be temporary – they would apply for up to 12 months -- while a full consultation and review on a permanent approach to tariffs is undertaken. However, they would come at a difficult time for UK retailers, who are facing tough trading conditions and a weak sterling-to-euro and US dollar exchange rate. As a result, the threat of even temporary tariffs has caused concern among UK retailers and brands already cautious about sourcing from Turkey because of high costs, political unrest and ethical concerns. Hence, they may look at alternative sourcing destinations.
To go from no tariffs to tariffs on certain products would increase the cost of importing clothing from Turkey. That is a big enough number to make retailers think about changing their sourcing strategies.
So far there were clear advantages of sourcing from Turkey. Turkish factories offer fast repeats of popular styles. So, brands can buy smaller initial volumes of stock and see what happens, and so the warehouse isn’t full of poor-selling lines.