Editing Openai/67f93ce5-0d18-8006-bcc8-5350de0f9ff9 (section)

===== 💰 Potential Profit Increase =====
# Tariff Savings:
* U.S. Tariffs on Chinese Goods: Up to 145%
* U.S. Tariffs on Egyptian Goods: Approximately 10%
* Tariff Differential: 135%

By relocating to Egypt, manufacturers can avoid the hefty tariffs imposed on Chinese exports, leading to substantial cost savings and increased competitiveness in the U.S. market.
# Operational Cost Advantages:
* Labor Costs: Egypt offers lower labor costs compared to China, reducing overall production expenses.
* Energy Costs: Energy expenses are generally lower in Egypt.
* Taxation: Egypt's corporate income tax rate stands at 22.5%, which may be favorable compared to other jurisdictions.Ask Aladdin Travel<ref>{{cite web|title=Ask Aladdin Travel|url=https://www.ask-aladdin.com/all-destinations/egypt/blog/business-in-egypt|publisher=Ask Aladdin Travel|access-date=2025-12-09}}</ref>
# Profit Margins:
* China: Average net profit margins for manufacturing firms range between 5% to 8%.madinetmasr.com<ref>{{cite web|title=madinetmasr.com|url=https://madinetmasr.com/annual-reports/2022/financial-performance|publisher=madinetmasr.com|access-date=2025-12-09}}</ref>
* Egypt: Companies like Edita Food Industries have reported net profit margins of approximately 12.5% in Q2 2022.

The combination of tariff savings and operational cost advantages can lead to higher profit margins for manufacturers operating in Egypt.