Turkey is concerned about an increasing trade deficit and the potential negative impact of low-cost Chinese cars on its local industry.
- Chinese cars imported into Turkey will face a 40% tariff.
- For less expensive cars where the tariff would be under $7,000, a flat duty of $7,000 will be imposed instead.
- This measure aims to protect Turkey’s local industry and prevent further deterioration of the country’s trade balance.
The battle against inexpensive Chinese cars intensifies as Turkey declares a 40 percent duty on Chinese automotive imports. This decision mirrors similar actions by the U.S., which recently announced an increase in import duties on Chinese EVs from 25 percent to 100 percent.
Turkey’s trade ministry stated that the measure aims to safeguard the country’s balance of payments and protect local industry. Last year, Turkey’s trade deficit reached $45.2 billion.
he additional responsibilities take an extra stride, specifically aiming at the most economical cars available in China. This is done by setting a minimum tariff of $7,000 per vehicle. In cases where the calculated duty at 40 percent falls below $7,000, a minimum duty of $7,000 will be enforced.
The scope has widened to include Chinese hybrid and combustion vehicles, marking another setback for China. Several countries, concerned about an oversupply of discounted Chinese products resulting from excess capacity and local subsidies, have imposed tariffs.
Following the lead of the U.S. and now Turkey, the European Union is poised to unveil similar measures targeting Chinese electric vehicles this week. However, the EU must proceed cautiously, as European automakers fear retaliation from China, given their dependency on sales in the Chinese market and their own manufacturing and importation of models from China.
Turkey’s tariffs, announced via a presidential decree in the official gazette, will take effect from July 7.
